Does A Snowball Have A Chance In Hell?

Are you a trader or investor who believes the market is heading to 30,000 or 10,000?

I can have a lot of fun with “hell” and its plethora of clichés. The Road to Hell, Hell in a Handbasket, Hot as Hell, and most apropos-A Snowball’s Chance in Hell.”

We clearly have a bull market paved with good (and not so good) intentions. Going to Hell in a Handbasket implies a course for disaster. Hot as Hell-no explanation needed.

All the above can apply to the current market.

A Snowball’s Chance in Hell, perfectly states the bull’s position of “not a chance,” of a selloff while implying the absurdity of its hyperbole.

Two technical signals suggest a snowball has shown up.

The declining U.S. dollar, softening of treasury yields and a run into utilities, which all suggest a flight to safety has begun.

Secondly, the S&P 500 seems to have established the island top.

Of course, the SPY could rally from here.

Yet, unless SPY regains a move over 228.34, will a snowball get that chance in hell? Or worse, can hell finally freeze over?

Another day of hinging on President Trump’s projected and potentially enacted policies, Biotechnology (IBB) rose on the hopes that deregulation will benefit their corporate bottom line.

Trump expressed his dismay at high drug prices. Putting on my consumer rather than trader’s hat, is his intention nothing more than what paves the way to you know where? Big Pharma must do its part.

Technically, IBB cleared resistance. The 200 daily moving average, a line in the sand many institutional buyers watch, must hold to keep our big brother going.

Biotechnology is an integral part of the Modern Family. In the past, he has served as a leader. Back in 2010, IBB got the rally started. Until its peak in price in June 2015, speculators participated big time.

Therefore, should Big Brother return, the bulls banking on a snowball’s chance can happily sweat out more upside.