‘Sitting Tight’

12:32 p.m., EST

Livermore: ‘Get right and sit tight’

Inverse biotech fund LABD, in trading channel

A steady sustained decline of tracking index SPBIO, is the best environment for highly leveraged (3X-inverse) fund LABD.

Biotech continues to be one of, if not the downside leader.

There has been no major break lower (LABD higher) that would draw attention to the index. That’s good in a way; it allows one to open positions (not advice, not a recommendation) while price action is relatively quiet.

It’s still a while before the close. LABD could even finish slightly lower and remain in the trading channel shown above.

Self-Employment Is Key:

It’s stories like this that highlight one way (if not the only way) to avoid being sucked into the first round of injections is to generate your own income.

It seems that everyone jumps on the bandwagon and tells us ‘how bad it is’ … very few do the work and show what can be done about the current reality.

From a financial market perspective, shorting biotech looks like the highest probability set-up (not advice not a recommendation) until such time that price action says ‘get out’.

So, that’s this site’s approach to generating income and being separate from any large (mandate enforcing) corporation.

‘Knock and Talk’

One last note on taking action. This is an example; offering a perspective on what can be done if there is a knock at the door.

Narrow your focus of ‘influencers’ to those who actually provide a service. Reduce or eliminate exposure to those who continue to peddle the fear without any kind of plan.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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