Short Squeeze … 3rd Largest, Ever

Is It Over?

ZeroHedge reports, the third largest ever.

So, is it over?

Starting tomorrow, we’re about to find out.

When looking at biotech sector (SPBIO) on a close basis, today’s action stopped just short of making a new closing high since the up-thrust (reversal) of October 28th.

Effectively, it’s a test of that reversal.

On to the analysis.

SPBIO, Daily Close

We’re going to put the chart below with no mark-up; then invert to show the potential trade set-up.

SPBIO, Daily Close, Inverted

Now, we’re inverted and marked to show penetration below support and then, today’s test.

The zoom gets closer-in.

The market is stretched, no doubt.

In a way, it’s a good thing. Either the test will hold and SPBIO, will decline from here (in earnest) or there’s something else going on and we’ll exit to look for another trade (not advice, not a recommendation).

Positions, Market Stance (courtesy only, not advice).

LABD-22-09:

As stated, in the prior update, LABD-22-09, position size was reduced during the session by about 10%.

Special Note:

This sector and leveraged inverse LABD are highly volatile. Character of the market can change at any time.

LABD may be exited without notice.

Entry @ 19.88, 19.71, 21.23, 21.65, 22.16, 22.75 Stop @ TBD***

Note: Positions may be increased, decreased, entered, or exited at any time.

***, Indicates change

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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