$Direxion S&P Biotech Bull 3X(LABU.US) rose five or six points, $SPDR Gold Minishares(GLDM.US) saw a small gain. The rebound in biotech this time has been quite strong, with the triple leverage amplifying it clearly.
Gold and biotech originally operate on two completely independent logics. For them to rise together in the same batch, the only common driver left is interest rates—the expectation of rate cuts provides direct valuation boosts to cash-flow-negative Biotech and non-yielding gold 😸
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