Waiting For The ‘Event Horizon’

We’re going to start first, with this link, presenting the on-going fundamentals of the sector.

For those of us literally pulling their hair out, wondering if the dam is ever going to break, we have this link.

‘We’ve just poisoned 5-Billion people …’

Note: The dam break is the ‘event horizon’ where everyone collectively wakes-up. Once that happens, the ‘conspiracy’ has been proven as undeniable fact.

Biotech SPBIO, may or may not have an absolute direct connection with the aforementioned links but it’s the ‘baby with the bathwater’ response that’s expected.

Adding to that, big players in this sector have no P/E

The top-ten weightings keep changing, but the last time it was checked, none in the top-ten, had a P/E.

Since we’re working the short side, it’s the leveraged inverse fund LABD that’s of interest.

Biotech Leveraged Inverse LABD, Daily

Note the near perfect Fibonacci time correlation.

As of today’s close, price action on the LABD has got itself into a Wyckoff ‘spring position’ having decisively penetrated support (blue line), shown below.

That spring set-up has been accomplished on weak down-thrust when compared to the prior move lower.

We have a high probability of upside reversal, down for SPBIO (not advice, not a recommendation).

Positioning

Stated in the prior update, we’re short this sector (long LABD) and now have Hard Stop @ LABD 13.27 (not advice, not a recommendation).

Update: 7/13/23, 2:51 p.m. EST

LABD price action pushed to 13.26, just 0.01, below the above listed stop and is now moving higher.

Trade has been maintained (not advice, not a recommendation)

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