Bounce or Break Time - Trading XBI
One more trade idea for the week and it is with my favorite biotech ETF.
The focus will be on FOMC Wednesday and if there is any reaction to news about rates, the biotech sector could make a big move.
For the first time in what seems like a long time, the possibility of rate hikes is back on the table. It is a small chance, but the fear of rising inflation has not gone away completely so we can’t rule it out.
A delay to rate cuts would also not be great news but it would not be disastrous either. This is honestly what I expect to hear.
And with news comes opportunities to trade. I like XBI because of the added beta, meaning the shares tend to move with more volatility than the market in general.
Not a huge week for earnings but Micron (MU) is Thursday, and the chart is set up for a bounce off of the 20-day simple moving average (SMA) ahead of reporting.
I like waiting until after earnings and will like be posting trade ideas I will be considering for MU and possibly a few additional tickers in the semiconductor space.
This week will be telling. Let’s start off strong!
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