Downside Pressure Builds

With this session’s price action continuing lower, getting back into the short trade (via LABD) was the correct move (not advice, not a recommendation).

With that said, we’re nearing the dangerous part.

Downside pressure continues to build.

As the chart shows, SPBIO ($SPSIBI) is close to the point where there’s no more support until much lower levels.

Biotech SPBIO ($SPSIBI), Daily

The Blue arrows highlight short entries (via LABD).

Short No. 1 was subsequently stopped out yesterday, then re-established (the same day) at the next arrow, No. 2.

If and when price action gets to the ‘free-fall’ area, anything can happen.

We could bounce off the support level, hover at it, or slice straight through.

Positioning

It’s obvious this sector’s in trouble. The fundamentals continue to build.

Just a few days after this post we have two more to add to ‘The List’, here and here.

Yesterday’s post showed a not-so-good entry that at this point in today’s session, has been ‘healed’ by price action.

We’re well above that (LABD 21.69) entry and solidly in the green (not advice, not a recommendation).

The stop on the LABD-23-11, position is now being moved (tentatively) higher at today’s low of, LABD 22.01.

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279