When Fundamentals and Market Timing Line Up

This sector has top names. [Jeff Clark's Market Minute]( When Fundamentals and Market Timing Line Up By Eric Shamilov, analyst, Market Minute No sector has been hit harder this year than biotech. In many ways, it has symbolized the bust in the overvalued areas of the market. The biggest example may have been Cathie Wood’s ARK Innovation ETF (ARKK). But if you compare ARKK side by side with the SPDR S&P Biotech ETF (XBI), they’ve been moving in lockstep for the last year. And as the market is trading at its lows – unable to shake off the constant flow of war headlines – a part of the biotech sector is starting to attract buyers. Let me explain… Recommended Link [DOUBLE AND TRIPLE-DIGIT PROFITS?]( [image]( Millionaire trader and former professional money manager Jeff Clark, is revealing his newest trading breakthrough… He’s used this secret to help 170,000 regular folks see triple-digit gains over 48 times and double-digit gains over 81 different times. He says [this]( breakthrough strategy is designed to help anyone collect triple-digit profits regardless of - trading experience - location - starting capital - or market condition He explains it all in [this exclusive interview.]( [Click Here to learn all the details on this breakthrough trading strategy.]( -- Back in December, we recognized that 2022 would be the year of the value trade… On [December 10]( I wrote: Tech may be the biggest disappointment of next year… investors tend to become myopic right before a trend begins to unravel. But there needs to be a pin that pops the balloon, and it usually comes in the form of central bank policy… I think we’re finally heading into a golden age of value. The iShares S&P 500 Value ETF (IVE) has fallen only 5% this year, while the iShares S&P 500 Growth ETF (IVW) is down 18%. That’s a big difference. And XBI, as a whole, has performed more like IVW than IVE – falling 28%. But XBI is not a concentrated portfolio. Meaning, even though all 188 stocks in the portfolio are in the biotech sector, their size, profitability, and valuations vary greatly. And at the current levels, some of the larger biotech stocks are starting to look very attractive. Take a look at this chart… [chart] [(Click here to expand image)]( It takes the ten biggest stocks in XBI (which holds 188 total stocks) and compares it to the rest of the portfolio… Those are stocks like Moderna (MRNA), Regeneron (REGN), and Horizon Therapeutics (HZNP). Those ten stocks are actually up this month, while the biotech sector itself is down 10% and the S&P 500 is down 4.5%. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. From a price/sales (P/S) point of view, these top names have value. The average forward P/S ratio of these top ten is just 6.4. That’s very reasonable for the high-growth biotech sector. Right now, that P/S is at a 10-year low. It’s also interesting from a market-timing point of view. Take a look at this chart of XBI with its [Relative Strength Index]( (RSI)… [chart] [(Click here to expand image)]( You can see that prices are diverging from the indicator… which means the probability for a reversal is rising (green arrow). [New Cash Law Will Be Disaster for Savers]( I prefer to stick with the large-cap names within the sector. In fact, that’s a theme I’ll be playing all year. And with the big, anticipated FOMC meeting coming up tomorrow, a change in market sentiment might be all this sector needs right now. Regards, Eric Shamilov Analyst, Market Minute Reader Mailbag Have you profited off the biotech sector? If not, will you be betting on the large-cap stocks now? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Have you heard of EUV?]( Have you heard of EUV? It’s a brand-new, $180 million technology capable of making the most advanced microchips in history. And only one company owns the patents. Legendary tech investor Jeff Brown says this is his choice as the No. 1 Microchip Stock of 2022. [Click here to get the name and ticker symbol.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Ultimate Guide to Taking Back Your Privacy]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [How to Earn Free Bitcoin]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. 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