Market Extremes & Channels

Intel and Biotech

It’s the market’s job to frustrate and bankrupt as many participants as possible.

For the highly competitive alpha, the desire to ‘be right’ and catch the absolute turn, overrides any fear of ‘pulling the trigger’.

That fear is for the timid, over-calculating, fastidious type.

Either way, the market attempts to shake-out one side (the alpha trader) or leave the other side behind (the other traders).

Volatility & Price Extremes

So it is with both Intel (INTC), and biotech SPBIO, with its leveraged inverse LABD.

For Intel, today’s action looked like it would never stop and kept screaming higher.

However, if we look at the daily chart, INTC (at this juncture) has failed to post a new extreme daily high.

The chart shows that each recent extreme has been lower than the last (prices approximated).

Intel INTC, Daily

We’ll see if the next session or sessions will be able to penetrate farther to the upside … or if today was the last gasp before heading significantly lower.

For biotech SPBIO, and the leveraged inverse LABD it was a different story, high volatility.

With that sector, the wild price swings do not make it obvious but there’s (as of today) a nascent trend confirmation and trading channel.

SPBIO, Leveraged Inverse LABD, Daily Close

It’s been about six-weeks since the biotech reversal was identified in this post.

A short entry at the location noted (LABD 12.91) would now be yielding an open profit over + 50% (not advice, not a recommendation).

It’s easy to see at this point getting in position later, when it’s obvious, sets one up to get whacked on an adverse move like we’ve had over the past four sessions.

After Hours

With about 30-mintues left in the after-hours session, inverse LABD, is trading higher between 0.50% – 1.0% and INTC is lower by -0.38%.

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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