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.
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.