This sector is about to launch

samsonLast week the market decided to put its bull costume back on, and it if a market looks like it has horns and snorts, it’s a bull until proven otherwise. The indexes now need to better their previous peaks set in early August to keep the engine turning as we head into another earnings season.

So onto today’s briefing…

“Spit in this,” my wife said, holding out a plastic test tube.

I duly obliged. She closed the lid, put in back in its box, and mailed it to the people who’d sent it. In just a short while my entire DNA sequence will be mapped. I’ll know my complete genetic origins, and most of all I know how I’ll die. Nobody dies of old age; they die because something fails. I wanted to know what that “something” will be so I can look after it better. In theory, we’re like a car- if you take good care of a car and keep replacing the parts it should go on indefinitely.

I’m writing this on Monday afternoon and the markets are in good spirits. But a certain market sector has been in a steady little bull market for a good while now, and my spitting into that tube reminded me of what it was: the biotechs are finally coming of age, and are set to change the world.
Here’s how the biotech market vectors ETF looks (a basket of biotech stocks):

9-17-13

It’s just broken above an ascending triangle and overhead resistance, and is now consolidating nicely, with double support at $81. In next month’s Money Mentor I have my eye on one particular company that looks set to soar.

Some of the discoveries and works in progress appear to border immortality, concepts that are hard for many of us to comprehend in terms of their impact on humanity. We grow old because our DNA strands stop producing telemores to create new cells to replace the old ones. These companies are trying to keep the production of telemores going on forever.

Whatever your personal beliefs are about this, this sector is here and will change everything, and you can either prosper from it or judge it and dismiss it. Bear in mind that this is a very volatile sector in its relative infancy, and it takes a good deal of research intelligence on your side to play it. There will be casualties. But there will also be the creation of tomorrow’s mega-giants with profits into the thousands upon thousands of percent for the right trades.

Best,
Jim.

 

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