Historic Volume, Short-Side
Yesterday’s down-draft in biotech leveraged inverse LABD, had the largest volume in the ETF’s history.
It’s possible, we just witnessed a ‘changing of hands’; from weak to strong.
Conversely, the biotech index XBI, may have reached or be near a long-term reversal (not advice, not a recommendation).
XBI, fundamentals as usual, are horrific; the (current) top-ten components, comprising over 18% of this index, are at mind-numbing ‘valuations’.
Of those ten, none have a yield and nine have no P/E at all; the one that does (KRYS), has a P/E, close to 1,900 (BigCharts).
Which brings us to the chart.
Biotech 3X Leveraged Inverse LABD, Daily
Unprecedented volume; potential ‘changing of hands’.
As always, anything can happen.
As of this post (11:30 a.m., EST) the inverse LABD is only slightly off its lows (XBI, off its highs).
If there’s to be a sustainable reversal, it could take some time to materialize (not advice, not a recommendation).
Either way, LABD volume is telling us to watch closely.
Stay Tuned
Charts by StockCharts
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