Battling the Elements

Working our way through the New York lunch hour, stocks are still churning. The small/mid-cap biotechnology issues housed in the XBI ETF are actually outperforming here, up over 1% as I write this, which is impressive considering the IWM (small cap ETF of the Russell) is lagging and flirting with a breakdown below $100, seen on the 10-minute timeframe, below. 

For a while now, the XBI has been noticeably lagging the market. So, a bit of reversion into the Fed Meeting later this week makes sense here, to keep shorts honest. 

Still, the action is uninspiring so far to kick off the final week of January. Further, we have been preaching tightening up timeframes in this market climate, using the CAT USO gaps down today as evidence of not being a swing trading-conducive environment, as a general rule. In essence, we do not want to be battling the elements of a corrective market. 

I will follow-up on that concept and plenty of ideas for Members in my usual Midday Video.