Anyone who has invested in biotechs in the 2000s might remember...

Anyone who has invested in biotechs in the 2000s might remember the sluggish performance of the health sector index XHJ between 2007 and 2011 and the feeling at the time from alot of investors was that it would never end.

I remember seeing it clearly on the chart as a bullish holding pattern with an (at the time) 6000+ point gain possible on breakout, and then when it finally broke it actually went on after completing its 6000 point gain to momemtarily pause before climbing another 5000 points.

I never imagined that it would then go on to climb another 27,000 points before really topping out, and now it looks like it's top was really just a reset opportunity in 2020, with an impending possible new high coming that would imo be the announcement of another 20,000+ run beginning.


In terms of "context", i cant think of a better time for CDX to be on the cusp of a fundamental transformation. If it can ride the wave of another index bull run it will have alot more momentum than if it has to pull against a tide. Watching XHJ closely for a new 48,000 high over coming weeks. Plenty of drivers in the market for it.