Behind The Scenes, Biotech Verifies Trend

Hardly a day goes by where we don’t get some kind of biotech ‘conspiracy’ or exposé like this, this, this, or this.
True or not, from a trading standpoint, we’re interested in reality.
So far, that reality, i.e., the price action, says that out of all the major sectors (except bonds, perhaps), biotech, and specifically, SPBIO ($SPSIBI) is the weakest (not advice, not a recommendation).
The Trade With No Name
Since the existing short on biotech via LABD is solidly in the green (original entry @ 16.99), it’s going to be tracked on this site as LABD-23-10, indicating the tenth series (trade campaign) this year.
Biotech SPBIO, 3X Leveraged Inverse LABD, Daily
The first chart shows the original entry (documented here and here) and the stop progression.

The second chart shows that we’re in a trading channel, confirmed with today’s higher (daily) high, with SPBIO, lower.

During this session, the stop has been tightened up to LABD 20.74 (Friday’s low).
With that, it could all be over soon, i.e., getting stopped out; or, it’s just a continuing series of well-disciplined progressions protecting open profit (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


