1:57 p.m., EST
South Africa Food Lines
The video at this link paints the picture.
Let’s use the images in that video and get deathly serious for a minute.
Imagine yourself walking up to one of the people in line, asking this rhetorical question:
“How’s that stack of silver?”
It’s no secret to anyone that’s been monitoring this site, we’re using the Biblical model (Genesis 41) for the current environment (not advice, not a recommendation).
That is: Corn and Grain (food) first … then gold and silver.
At first it seemed like a quaint alternative to the non-stop hyperinflation (no thought required) rants to continue ‘stacking’.
Now, it’s different. Now, it’s getting serious.
You won’t see that kind of line outside the bullion dealer.
Moving on to the markets at hand … once again, biotech:
LABD (SPBIO) Analysis:
After yesterday’s LABD behavior, the logical thing to do would be to put the stop at the session low.
After all, that low was just below the lows of the previous day. Good to go, right?
It’s wrong because that’s what everyone would do. It looks like from today’s action, that’s what everyone actually did.
Recall that price action is automatic.
If there are too many stops all bundled up at one location, the orders will (automatically) be generated to go that that spot.
LABD price action penetrated the daily lows at a deeper level early in the session.
In the process, it penetrated well defined support which in turn, puts LABD, in spring position.
That’s where we are now.
Springs are usually tested.
If price action can hold above the support boundary, expectation is for a rally to at least the top of the range: ~ 24.50 – 24.75