9:09 a.m., EST
If there’s going to be a big move, the market will make sure you’re not along for the ride.
The proverbial ‘gut check’, as David Weis used to call it.
It’s an adverse move that’s intended to shake any (all, if possible) weak hands out of their positions.
How will we know if that’s what’s going on with biotech’s, SPBIO?
Yesterday, was an upside reversal bar on the daily SPBIO, chart. Will the market go higher (LABD, lower) from here?
The first clue will be the open.
If SPBIO opens lower, with inverse LABD opening higher, we’re on the right track for more biotech downside.
If LABD makes a new daily high … above yesterday’s LABD, 30.42, high, we have confirmation of a shake-out.
Right now, we’re still in the pre-market.
However, LABD is already trading up between +3.5% – +4.7%, which weighs probability to more upside … downside for SPBIO.
If SPBIO somehow makes a new daily high (LABD, new low), the bulls are gaining a foothold.
At this point, the Project Stimulus account remains unchanged (not advice, not a recommendation):
Charts by StockCharts