Not happening: Do not pass Go. Do not collect $200 dollars.
From the open, IBB headed straight down; decisively penetrating support at the 130.00 – area.
Next potential support and a possible chance of a rebound, is around 125.00. At this point, it’s not looking good.
Right now, volatility is high.
The low risk part of this move, that is, price action over the past three months, is over.
Another low-risk (short) entry point may never happen. Biotech could just collapse from here.
Remember, Stockman’s quote: ‘It’s $2-Trillion of bottled air’.
Since were following the tenets set down by the market masters linked here, we’ll sit tight at this point.
A reasonable stop level for BIS (2X, inverse ETF) can now be moved to around 33.50. For illustration only. Not a recommendation. Not financial advice.
Charts by StockCharts