Watch The Volume
There’ve been strange ‘goings on’ in the biotech sector.
Not on the long side, but the short side.
Big money moves slowly, is patient. It takes time to establish a strategic position (not advice, not a recommendation).
That’s what could be happening going short biotech as we’ll see below.
Biotech Leveraged Inverse Fund, BIS Daily
The BIS fund attempts to provide -2X leverage on the sector fund IBB.
It’s not heavily traded with daily volume typically low; that is, until a couple of weeks ago.
Starting on January 22nd, and for the next two weeks, someone has traded a million-share block (in total), possibly betting on the downside of IBB.
As can be seen from the chart, similar block volumes are nowhere to be found.
This type of activity is not unlike the ‘mystery volume‘ that showed up in the JDST.
Stay Tuned
Charts by StockCharts
The Danger Point® 