2:46 p.m., EST
Biotech SPBIO, Down
Inverse LABD, Up
Inverse biotech, LABD above, is confirming a pivot.
The magenta arrows show contact points morphing into a pivot that has two more contacts.
The new trendline was copied, then pasted to the far left of the chart.
It’s clear the new (pivot) trend is identical to the one created when LABD bottomed out this past February.
While the overall markets (S&P, Dow, COMPX) are still showing green, biotech looks like it has started the next leg down.
The original short position via LABD, has remained intact (not advice, not a recommendation) and has been increased five times (including today) since the beginning of this month.
In our view, biotech’s signaling the potential for a very dangerous situation.
Biotech’s headed down and we’re already short; not advice, not a recommendation..
As Livermore said a hundred years ago, ‘surprises tend to happen in the direction of trend.’
Stay Tuned
The Danger Point® 