During last year’s insane election, Trump made big claims about really taking drug companies to task, reigning in the crazy expenses of medicine, and in general giving the overpaid makers of drugs the kind of smack-em-up they all deserve. Well, right on the heels of his rousing success building a border wall (and having the Mexicans pay for it), completely overhauling the tax system, and sending Hillary to jail, he has, on top of all those successes and promises kept, beat the stuffing out of the drug companies, including the entire biotech sector………
The quarter’s end is upon is, and all in all it’s been a total meh. Month after month, CB-driven lifetime highs on the indexes. I’ve been able to survive this continuing debacle surprisingly well, and one of my many short positions that I’m still cheering is FInish Line. I’ve shown it before, but this is a classic topping pattern which I believe will succumb swiftly to the slightest bit of market weakness, if such a thing is ever permitted again.
The following three ratio charts compare the strength of the NDX, RUT, and SPX with their respective Volatility Index.
The following NDX:VXN ratio chart shows that NDX is sitting in a precarious spot at a rising trendline, but well below what is now major resistance. All 3 technical indicators are still in “SELL” mode, as rising volatility outstrips price performance.