A New Trendline?

Well, ladies and gentlemen, it’s like the Keystone Cops out there.

One side doesn’t think anything bad is going to happen.

The other side, says there’s an implosion coming, if not already here.

Yet another, somewhat honest, saying it doesn’t know but that it will be ‘messy’.

How about we just look at what the market’s actually telling us. That’s a novel idea. 🙂

Iterative Process

As the year comes to a close, it’s (now) obvious, what took place for most of 2024, was a process of iteration.

Working to position for the downside was not the question. Identifying the ‘best opportunity’, was.

Strategy Re-Cap:

Using Livermore’s insight, we assess ‘general conditions’.

With that, came the bearish stance. Then, what tuned out to be an iterative search for (short) opportunities.

That search culminated with trade LABD-24-21, still active (not advice, not a recommendation).

So, here we are.

Biotech XBI, Daily

We’re about two-hours before the close; XBI, has posted a new daily high, and low, threating with ‘outside down’.

We can see the potential ‘channel-within-a-channel’.

The Weeks, Ahead

The coming weeks may hint at what’s likely for the year.

If we don’t get a ‘January effect’ or it gets negated, that in itself gives us a bearish clue (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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