Biotech: Torn Between Two Forces

On The One Hand … Is Truth

Let’s start with Dr. Jane Ruby, first.

At this link she explains to the kindergarteners (who even at this late stage, STILL believe the lie), the truth about ‘The Speck’.

Go to time stamp 6:37 and watch; you can clearly see her exasperation as she has to go through it one more time.

We also have this going on behind the scenes as well.

On the other side is the continuous stream of fear propaganda. Just go to your local TAAS (sorry, FOX) news outlet to hear the latest lie du jour.

With that in mind, let’s go straight to the index for the day, biotech SPBIO.

The last analysis proved to be flat wrong.

There was a breakdown as anticipated but that move did not follow through. It was the precursor to an up-leg which is where we are now.

Biotech SPBIO, Weekly Close

It’s obvious.

Last week was a test of the resistance (blue line).

Thís week started with biotech sharply lower (early today) but then coming back to test … where we are now.

That test is starting to reverse late in the session (around 3:00 p.m. EST).

Let’s go straight to the inverse fund LABD

SPBIO 3X Leveraged Inverse LABD, Daily

A very tight wedge has formed.

Price action attempted to break out but has come back for a test. This is where risk is least (not advice, not a recommendation).


The Basic Materials short (SMN-22-01), while profitable, was not going as planned. That position was exited at SMN 14.29 … you can see it as the low of this session on your trading platform.

SMN 14.29, is me 🙂

That capital has now been used to position short biotech, SPBIO at LABD 27.58. trade LABD-22-05 (not advice, not a recommendation).

The current stop is the low of the day @ 26.98.


Even as this post is being generated LABD is pulling away from the lows. With about one hour left in the session, it’s at 28.18.

The LABD entry was an initial position; there’s plenty of capital left to increase the line if trade conditions warrant.

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.

The Danger Point®, trade mark: No. 6,505,279

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