Early Session

Tight Price Action … Trade About To Happen

We’ve got the daily chart of LABD, leveraged inverse fund Biotech, SPBIO, above.

Next, we highlight the tight price action and note the failed push lower:

Scroll up and down between the two charts and you can see, this is an area where the market has firmed-up.

Tight action is usually (not always) a pre-cursor of an upcoming move. One side is taking control; about to take the market their direction.

Note: The last two days (including today) show a pivot of sorts … still very young.

Positioning:

The tight stop on the DRV position was hit early in the session. Exit was performed at DRV 4.4336 (not advice, not a recommendation).

That freed-up capital was then allocated to a position in LABD (again, not advice, not a recommendation).

The stop is tight at LABD 18.79.

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.