Positioned Ahead of Time

Developing a trading plan that accounts for broker outages, blow-ups, and platform lockups, was presented on this site, as early as December of 2020.

Back then, we had this:

“Built into that [system] approach is recognition there will be market outages, trading halts, communication interruptions and natural disasters.“

“The one thing that may separate this site from others, these (potential) events are taken into account.“

Fast forward to now.

Those events are not ‘potential’ anymore, but a reality.

Note: Before leaving that post, from December 2020, let’s not forget, the dollar reversal (and rally) discussed, is still going, nearly four years later!

That’s what’s meant by ‘a strategic, engineering perspective’ (see About).

Moving on to the topic at hand.

The last update showed potential trendlines in biotech, XBI.

As a result of today’s action, we’re revisiting the post with new information.

Biotech XBI, Weekly

As Dr. Elder said years ago, ‘trendlines are not made of glass’. Trendlines are more like a wire fence; the market can attempt a breakout that may ultimately get negated.

With the weekly XBI, that may be the case.

We’re about one hour before the close, only one day into the trading week; it’s pre-mature to say XBI, will finish the week (or even the day) inside the trendline shown above.

However, if we do end the week lower, it may be a serious bellwether; XBI could be in deep kimchi (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