We Are Definitely in Season

I do not reckon I am being overly-dramatic in saying that this week figures to be the most jam-packed combination of micro (earnings) and macroeconomic (the FOMC, Biden's families plans speech, GDP, inflation data) events likely through at least June, if not the entire summer. Tesla earnings get it all rolling this evening, setting the stage for AAPL FB AMZN later this week, among many, many, other premier names. 

In the meantime, we have a drifting tape led by small caps and tech, which is certainly not the worst thing in the world for bulls. In fact, as we noted in my full video yesterday (usually just for Members but open to everyone via the previous blog post on this website), the IWM has pushed above $225 resistance impressively today. Whether or not the small cap ETF can hold above resistance in the face of a barrage of events this week remains to be seen. However, there is no denying the progress, thanks in large part to the improvement in small cap biotech. 

As smaller bios get their groove back, I continue to think that another wave of M&A could easily be around the corner, as larger healthcare players seek growth and diversified revenue potential. Beyond pure bios, cutting edge healthcare tech plays like GH and TXG also make sense. 

Guardant Health, below on its daily chart, focuses on liquid biopsies and is acting as constructively as any of these names, coiled at recent highs and a logical buyout target.