14Apr11:19 amEST

Never Show Your Fangs Unless You Intend to Use Them

[Michelle Pfeiffer in the film, Wolf (1994)]

Amid the Coinbase IPO today, we are seeing some initial sell-the-news reactions in the likes of MARA and RIOT. However, the day is still young, and I would not be in there shorting those high beta monsters with so much of the session to go. 

But the larger issue for me today is the overlooked strong price action in two areas of the market which have been either bludgeoned or quiet of late--Biotechs and energy stocks, as well as materials. 

The XBI ETF for bios is back above its 200-day moving average with one of the best morning sessions the sector has delivered in months. Because of how much destruction has caused to longs in recent months, the rally is being met with very little fanfare, which I view as a bullish sign from a contrarian standpoint as opposed to a rocket emoji-fest. 

And energy is also extremely hot, moving with crude higher as the OIH XLE and XOP ETFs all have been pushing higher for most of the morning. 

The "FANG" (meaning the mega cap tech leaders like AMZN FB GOOGL NFLX) swap for FANG (Diamondback Energy, below on its weekly chart) swap may be close to materializing, as energy threatens to resume its prior uptrend which began last Halloween at the depth of what was a classic sign of late-stage bear market (fo energy stocks) apathy, the telltale sentiment which we discussed back then in real-time both here and with Members

On the FANG weekly, note the highlighted bull flag just below its 200-period weekly moving average (yellow line). Many energy stocks have a similar weekly chart look, in fact. And moving up and through the 200-day into the heart of spring opens the door for another push higher in the entire energy/materials space.

Stock Market Recap 04/13/21 ... Sectors with No Sex Appeal S...

 
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