Do These Charts Suggest Huge Diabetes Crisis Looming?

The charts are not only useful for making profits in the market.

You also get to know and see things that others don’t.

Scrolling through the charts just informs you a little bit.

And you get to find out what’s really going on in the world.

Without reading for hours in the day.

The other plus is this: you don’t have to rely on the opinions of others.

The weight of money tells you what’s really going on.

Here’s an example of what I mean.

Here’s a couple of charts that came up when I was scrolling through the US market. Take a look at these two…

Graph of Drexcom

Source: Optuma

[Click to open in a new window]

That’s a strong move up. Note the gaps in share price, that never fill. That’s a bullish and very tradeable dynamic when you get to see it a few times. Who needs the opinion of an analyst, when you have a chart?

And to the next chart…

Graph of Tandem Diabetes

Source: Optuma

[Click to open in a new window]

Again, a daily chart here, that’s a serious move right there. The stock price was almost as low as two dollars in February. It got as high as $50!

So, charts like those are telling you something. It’s informing you a little about the world.

What do both these charts do? What sector or market do they operate in?

Turns out, the first chart belongs to a firm called DexCom Inc [NASDAQ:DXCM]. Think glucose monitoring products to manage diabetes.

And the second chart belongs to a firm called Tandem Diabetes Care Inc [NASDAQ:TNDM]. Think everything to do with insulin infusion for diabetics. Their touch screen insulin pump looks more like a small iPhone than a medical device.

It suggests there is strong demand for their products in the market.

And if you join the dots, it suggests the diabetes epidemic is going from bad to worse.

These charts only confirm the huge crisis in front of us.

Today we rarely talk about TB or the bubonic plague.

The modern day plagues are obesity and type 2 diabetes.

And it leads to all sorts of bad outcomes.

Amputations, nerve damage, blindness, kidney disease, dialysis, heart attacks, cancer, and strokes, to name but a few.

You don’t need to read in a newspaper that diabetes is on the rise around the globe. You know that already from these two charts.

Regrettably, this sector has some tailwinds.

And if companies can provide a product or service that people want to use in this market, they’re likely to do well.

Diabetes is a sector to watch. Along with the obesity market I highlighted last week.

If you go to the government websites, they’ll tell you diabetes is a ‘chronic’ condition. That means once you have it, you have it for the rest of your life. So you might as well get used to it. There is no cure and at best you can do is only manage the symptoms.

Really? Is that really true? 

I can’t help but feel mainstream medicine is missing something in all this.

Why this worldwide epidemic of obesity and diabetes?

Despite all the best medical advice.

Is it a personal failing to follow the medical advice or a medical failing?

Some doctors are now placing more focus on the role that insulin, a hormone, plays in all this.

They may be diseases of too much sugar and too much insulin. If so, then it becomes a question of how to get rid of the sugar and get the insulin down.

And they’re starting to answer these questions.

Obesity and diabetes may be curable and reversible diseases.

I’m not pushing a barrow with that, so I leave it to you to explore and follow through.

What I can say is: that view is not gaining much traction in the medical mainstream.

So it’s business as usual, obesity and diabetes rates continue to rise.

And it gives a nice tailwind for those who operate in these markets.

Something to keep an eye on for trading purposes.

Get up to speed with what’s really happening in the world. If you’re not reading the charts, you’re out of the loop and being left behind.

To get in the loop and use the charts to profit from market movements, go here.

Terence Duffy,
Chartist, Phil Anderson’s Time Trader

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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