Before The Open
Biotech SPBIO And Inverse LABD:
Ready To Reverse.
We’re using the leveraged inverse fund LABD, for our analysis (SPBIO down, LABD up).
Yesterday, closed with the 4-Hour chart above.
Annotating with Force Index numbers; each early session 4-Hour bar for the past two days, has been posted on decreasing downward thrust (last two magenta down-arrows).
In addition, the first four hours of the last session penetrated support and then retraced in the next four hours (last bar).
That sets up a spring condition as shown:
If this really is the crest of a major (overall market) reversal, we need to remind ourselves, it’s a massive juggernaut.
Said many times, we (my firm) are looking and working on the big move (not advice, not a recommendation).
By definition, it’s not a popular method.
Nothing seems to be happening … until it does. Then, it’s too late to position.
With about 17-minutes to go before the open, LABD is trading unchanged.
Obviously, the first four hours of trade will be important.
The market (LABD) could continue to grind lower … or we may be at the end of the counter-trend move; ready to reverse upward for LABD and down for SPBIO.
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.
The Danger Point®, trade mark: No. 6,505,279