Repeating Trend … Back Again

After The Close

Inverse Fund LABD In Repeating Trend

Final Pivot Higher?

For months, the biotech SPBIO and its leveraged inverse fund LABD have shown a repeating trendline characteristic.

This time around, the two right-side trend contact points (shown above) are LABD’s (Day 34) outside up reversal and today’s Fed minutes release, reversal.

The chart below is a compressed version of LABD. It gives a better perspective on the gain potential.

Looking at the chart it’s clear why so much focus has been placed on strategically shorting biotech (not advice, not a recommendation).

If there’s a decisive SPBIO break lower, the gain potential for inverse LABD is significant.

Time frame for exit (not advice, not a recommendation) unless price action dictates otherwise, is still planned for mid-October.

Stay Tuned

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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