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What a difference a speech can make! President Trump’s performance yesterday, in which he sounded less erratic and rather sensible, sent the markets skyward today. How great is that?!

What I’d like to focus on today is one of the few sectors that continued to rise despite the uncertainties of Mr. Trump’s first month or so in office, and now seems ready to really take off.

The chart above is for the pharma Spider, based on NYSE’s pharmaceutical spider, XBI. I’ve marked an impressive breakout in the last few days, but also a blue trend line that tracks a continued rise since the day of the election last November. I picked up a bit on the breakout.

The following chart is less developed. An offering from the NASDAQ, biotechnology ETF IBB hasn’t broken out yet and carries a touch more risk in the sense that for a couple of weeks its RSI has been toying with an overbought signal in the RSI panel. That said, a week ago a golden cross appeared on the scene. Regular readers will know that this signal is often bullish. So I picked up a few of those units, too. I take the red and green Auto Support-Resistance line to be the area where I would consider bailing out.

(Click on image to enlarge)