Bad, And More Bad News
It’s been a little nerve-wracking over the past two sessions being short biotech; was it an upward correction, or a full-blown reversal?
No one really knows, until it’s over.
Well, as of today’s new daily low in index SPBIO, it looks like what is now seen as a correction, may be complete (not advice, not a recommendation).
Bad, And More Bad
On the fundamental side, The List keeps building with links like this, this and this.
However, keep in mind, it may be something as simple as rising interest rates that’s ultimately going to collapse biotech and the rest of the markets (not advice, not a recommendation).
Moving on and looking at the chart of SPBIO, there’s a trend confirmation and potential trading channel.
Biotech SPBIO, Daily
The left side line is the trend … the right-side line is what’s called the ‘reverse trendline’ and possibly defines the trading channel.
As of this post (12:30 p.m., EST) the SPBIO, is doing all it can to reverse higher, against what may be the over-riding (down) trend.
So far, the daily high of SPBIO 5764.73, remains intact.
Positioning
As a result of today’s new SPBIO low, the stop has been moved on the position in the inverse fund LABD, from LABD 18.22, to LABD 19.18 (not advice, not a recommendation).
Stay Tuned
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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.
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