Sector Update - Biotechs & Utilties Stand Out

Biotechs Weekly

Biotechs have been taken out to the woodshed ever since July of 2015.  The reasons are numerous from Activist' disagreement (Valeant), overvaluation, & even negative political targeting by both parties.  Regardless, the $XBI looks to be acting healthier & to have formed a bottom on the weekly chart above.  A close above $61 will pique my interest into starting a position. 

Utilities Weekly

Utilities have seen the best sector performance of 2016 with a 19.8% increase.  They have come in some on the weekly chart above & the $XLU is testing it's 10 Week Moving Average.  It has held this line well in its run up in 2016.  I'll be watching closely for a close above $51.25 on Friday to put on a position. 

Making a Case for China

China Weekly Chart

It's almost amazing to look at the run up & proceeding crash in major Chinese large cap equities ($FXI) from April 2014 - February 2016.  That is why the price action in the $FXI has my attention again.  There is still tremendous upside potential in the Chinese economy & markets alike.

The FXI looks to have formed a lower high in early June, & has recently regained it's 50 Week Moving Average.  Additionally the 10 Week & 50 Week are about to make a bullish cross.  We have been grinding sideways for a few weeks to diminish the overbought conditions from the recent rise.  If we get a close above $34.84 today, which seems almost like a given, I'll be putting on a full position at the market close.  I will use the 50 Week Moving Average as my stop.  Good luck & God Bless!