Leveraged Professionals

Leveraged funds, especially 3X biotech inverse fund LABD, is likely to weed out (bankrupt) an inexperienced participant in due time.

With that said, we have to at least concede there are some deep pocket professionals participating in the same fund during the same hours as our market neophytes.

So, when volume behaves in a way uncharacteristic to the market, something’s up … or about to be up.

Biotech 3X Leveraged Inverse Fund LABD, 1-minute.

The volume spike indicates capitulation or a big player has just moved in.

At the blue ‘arrow’, there are three one-minute bars.

The long entry took place during the second bar (not advice, not a recommendation).

The next chart shows the result.

As Bert Dohmen has said countless times during recent interviews, ‘Nobody looks at volume’.

Stay Tuned

Charts by StockCharts, TC2000

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.

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