So,going into Monday morning, would you rather be long the PM Complex (Metals, Gold Miners) or BioTech here?

My first chart is on IBB (LABU, since inception, appears to be a “Falling Knife”). My price channel looks ugly and the 30ema on the Weekly displays classic Weinstein stage 4 Bear Market price action. Note how in the Bull phase, the 30ema is trending up and provides support at IC Lows. Now it is trending down and providing resistance at IC High’s. Nuf said…

Also note my Blue horizontal line at the bottom. What is that saying about Triple Bottoms? There is nothing I like about this chart.

Second chart is for Gold, which has been less bullish than the Miners. Lets see, 30 weekly ema pointing up and providing support. Hmmmmm, tough choice.

Screenshot 2016-05-15 11.50.08 Screenshot 2016-05-14 17.23.57

Footnote:
The first rule of Walter Bressert’s Cycle theory is to “Confirm the Trend of Longer Cycles.” This is critical, as Longer Cycles are dominant over Shorter Cycles. If the SPX’s 7 Year Cycle is still down, you should expect lower 5-6 month IC Lows and Lower Highs, which is what is happening so far.

Fortunately, Weinstein’s Stage 4 Analysis helps us with identifying the stage of the “longer cycle.” 😉