Biotech has gone from red-headed stepchild to favored son in a very short time this year.
(No s^^$, Sherlock!)
And, multiple Posters are expressing their concern about an overheated Bio market that
will get Maxwell's hammer in 2020 as the pharma industry gets body cavity searches
by both political parties.
(Maybe Gwenyth Paltrow would like to volunteer for that duty)
Okay, but the behavior of the bios in the last 2 weeks has been hot, hot, hot,
So when might a fall off commence ?
Today, tomorrow ...,., or Januaury of 2020.
On my puter, the Options windows are always open.
And, as hot as bio PPS runs are, the Call Options are melt-your-face-off hot.
In particular, the December 20/2019 Call chains .
I'm watching price changes that can start at 100% and literally scream up to over 400%.
And the Implied Volatilities.... blood seeping from the ears and eyes dangerous.
Look at the December calendar.
See where the 2 holiday's are perched ?
Midweek in both weeks.
It is now my hypothesis, that the 20th, Opex Friday, will prove to be a pivotal first step in any retreat
from the biotech sector by the general market.
Take the money and run for the Holidays.
"Hope for the best but plan for the worst"