Barclay's bearish, but Dollar - AND Biotech -bullish prospects: ups and downs on the Street today

Pete Najarian is Twittering today that OptionMonster is offering a free webinar at 3:30 Central Time (right, that's 4:30 Eastern) on the prospects for global rebalancing to trigger a huge bull market in the dollar. Probably worth checking into, at: https://optionmonster.omnovia.com/registration/pid=44031241638072. Meanwhile, a quick look at two things, one UP and one DOWN today on the Street: the Biotech index ($BTK) has broken upward from its recent consolidation range which is especially significant on a day when the broad markets are down. There are a number of ETF's that track biotech companies, including BBH, XBI, IBB, PBE (and I think also FBT and PBTQ but this information is a bit dated). Do your own diligence, but it's worth looking at these charts - the P&F is showing a target to $770 for the $BTK, but if it turns out to be a longer swing play then one might consider partial profits there and see where the rest can go over a much longer time. (Stops are probably a good idea just under the recent consolidation range lows.)

If you agree with the idea that biotechnology may be part of a bull market for years to come, this can be a good opportunity. If it experiences great weakness (perhaps as part of broader market weakness) at some point in the future, and falls under the lows of the recent consolidation, then there's no harm in stopping out and watching for a lower re-entry point. But at least, this way we'll be in now - in case biotech never does revisit the recent lows.

Lower down are charts of Barclay's (BCS) - big drop yesterday and with those gaps it could be an island top reversal. Island reversals are considered very powerful trade setup patterns. The obvious stop would be at Monday's high. The P&F chart doesn't show a new target yet but has registered a "High Pole Warning" alert. While I don't have a target at this point, one might consider a 50% or 61% retracement back to the lows. Checking out any fundamental news and research on Barclay's may also help inform one's views about where the stock goes.

(click any image to see it larger)