This past week, all the major indices have gone through some type of relief rally. Call it a Santa Claus rally because there probably won’t be one this December.
Throughout this upward correction, the case has been made over and again, only biotech SPBIO’s in a technical (and fundamental) condition that would allow it to decline farthest and fastest (not advice, not a recommendation).
Wyckoff analysis along with Livermore’s strategic approach that’s coupled with Loeb’s ‘focus’, has led us to (shorting) this sector exclusively.
Strategy, Tactics, Focus
Biotech SPBIO, Weekly Close
Looking at the far-right side of the chart, SPBIO rallied this past week. It looks like it may head higher … that is, until we put in the trend-lines.
Now, let’s put in the trendlines.
Extended trendlines show the downside potential.
We’re about to see how this works out.
Friday’s upward action in SPBIO slowed with inverse LABD, posting narrow (downside) action as well.
Ready to reverse.
Trading action in the past week amounted to reducing the position size in LABD-22-05, by about 4.6% (not advice, not a recommendation).
If and when SPBIO continues is downward trajectory, that position (shorting via LABD) will again be increased as the market allows.
It was going to be $3,000/oz., in months, not years.
Gold-O-Mania was coming. You could even sign up and pay money to read the group-think of the imminent launch.
Well, obviously at this point, $3,000/oz., is nowhere in sight.
Gold (GLD) is even lower now than it was then. On top of that, the ‘changing of hands’ assessment has not been negated; prices continue to grind lower.
Having the financial press cheerlead at the exact wrong time, is an (almost) necessary component to identify a lasting reversal.
As we can see here and here, the financial media’s position is, we’re heading higher. There is ‘real buying’ (whatever that is) for the first time in weeks.
However, from the chart evidence presented above (and we didn’t even get to ‘gap-fills’, ‘multiple wedges’, ‘contracting volume’ … maybe later), it’s hard to present that price action will somehow move significantly higher.
Price action behavior above, appears to point to an immediate or very near-term downside reversal.
Lastly, we have this from Activist Post: Real estate housing crash in progress.
Be careful. If you read the article, can you see the ruse?
It’s been discussed before on this site. That is, the real purpose of the Fed.