From Weak (Longs), to Strong (Shorts)
Biotech has similar price action to gold (GLD), back when it changed hands (link here).
The 3X Leveraged Inverse Fund LABD, shows the detail.
SPBIO, 3X Leveraged Inverse LABD, Daily
The message of LABD, is straightforward if you know where and how to look.
We’ll start first, with the un-marked chart.
The record volume spike is obvious and noted below.
Immediately after the record volume, LABD shows a change of character; it’s reversed to the upside.
The next chart points out that LABD, just finished three consecutive up closes with heavy volume.
There have been higher single day up volume(s) but not ever three in a row at this (elevated) level.
The inference: This reversal is or has potential to be significant.
Starting on July 12th, and all through the reversal, a short position (LABD-22-05), has been and continues to be accumulated (not advice, not a recommendation).
There have been minor adjustments (small exits) throughout, but the core position has been maintained and increased as the market allowed.
As long as LABD, price action remains agreeable, stays calm, potentially ratcheting higher, the plan is to continue to increase the position until volatility or hitting the stop prevents further action.
Current stop is now located @ LABD 26.21 (not advice, not a recommendation).
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