3:48 p.m., EST
One of Dr. Elder’s admonitions was: ‘Run fast or not at all’ when confronted with retracing price action.
The trade plan from months ago, concerning the biotech short (not advice not a recommendation), was that potential for collapse was so great, the trade was going to be maintained (and increased) until it either worked out for profit or the price action was so obvious that ‘now, was not the time’.
If there ever was a time in the past five-weeks for SPBIO bulls to take back control, this is it.
However, to prove they’ve got the upper hand, inverse fund LABD would have to make a new weekly low … at least.
That (low) has yet to happen.
The inverse LABD tape is a sea of red and purple; at the bid, below the bid, mass selling … having the look of capitulation by the bears.
It’s possible we’ll know more over the next few days.
At this juncture, LABD price action is testing a support-boundary area while also testing the right side weekly trend line.
Marked charts are below:
Charts by StockCharts
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