This morning’s gap lower in SPBIO (LABD higher) was fully expected.
Expected as well, is the retrace in progress as of this post.
Today, is Fibonacci Day 8 from the LABD, pivot low of June 28th.
Biotech (SPBIO) has posted a fantastic time sequence on the daily as well as the weekly.
The gap-lower open in the S&P (more so for SOXX) has everyone sharpening their pencils; wondering, if ‘this is it?’.
It could be.
However, with attention now focused on potential downside, the clean Fibonacci sequences are likely to morph into chaotic movement.
The time for low-risk short positioning (not advice, not a recommendation) in this sector may be coming to an end.
Looking at inverse LABD, and using the Fibonacci retrace tool, it’s likely price action will retrace to at least the 38%, level.
At this point, it’s already close:
The inverse biotech LABD, 15-minute chart (above) shows we’re near the 38%, level.
After today, the expectation is for price action to become SPBIO downside chaotic … long enough to frustrate the late-comers to the sector.
After that, and however long that is, price action may once again become orderly.
Stay Tuned
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.
After BA pilot fatalities were confirmed, at least one airline is backing off from insisting their pilots are injected.
Some adverse reactions linked above, occurred in-flight; the pilot was incapacitated.
“Is there a pilot on-board?”
That could become a frequent call through the cabin intercom in the months … even years to come.
The bottom line implications are obvious.
The response to ‘back-off’ probably has nothing to do with safety and more to do with protecting those executive stock options.
Which brings us to the markets.
Analysis: SPBIO (LABD)
The last update for biotech said it was ‘about to get real’. So, it has.
Looking at SPBIO inverse fund LABD, we have the familiar trend lines:
The market itself says it wants to follow this trend.
Pulling out to the weekly, we get what seems to be an incredible picture.
At the beginning of the trade, the short position in SPBIO, via LABD (not advice, not a recommendation), had an exit time-frame during the second, or third week of October.
From an empirical and seasonal standpoint, that’s when on-going downtrends tend to reach their lows.
Already Baked In:
Various numbers are bandied about as to how many have been injected.
One estimate is 2-Billion, world-wide (Dr. Coleman if memory serves).
Total population at 7.9-Billion; 2-Billion, equates roughly to 25%
No matter what happens, de-population is already baked-in.
Stay Tuned
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.
Looking at each, none of them even hint things could go wrong.
To be really cynical (and probably correct), the senior trading professionals may know this sector’s at risk of implosion.
They task junior employees to cover it; attempting to talk it up.
Analysis: SPBIO
Moving on to inverse fund LABD, we have Fibonacci correlation on two time frames:
In addition, from a Wyckoff standpoint, we’re in spring position on the weekly and daily time frames.
All of this points to high probability (not advice, not a recommendation) that biotech and specifically the weaker SPBIO, has pivoted to the downside (LABD higher).
Naming Names:
A couple of days ago, we had Dr. Yeadon (former Chief Scientist, Pfizer) absolutely grilling and eviscerating his interviewers, covered here.
Then, we have Dr. Coleman deciding to name, names.
Now, it’s getting real.
With this type of high-level pressure being applied from internationally known and respected (real) heroes, one has to think, it can’t be long before the lie is fully exposed; blowing the entire sector, wide open.
Stay Tuned
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.
It’s a list of empirical observation that market tops (reversals) tend to occur during holiday weeks.
The weekly chart of biotech SPBIO (which has been inverted), shows a Fibonacci 21-weeks, from the all time high (low on the chart) to this week’s pivot:
Not only is SPBIO adhering to Fibonacci time prints on the weekly, it’s doing it on the daily as well.
It was a Fibonacci 34 days to complete the 38%, retrace.
It was a Fibonacci 5 days to complete the most recent reversal and test; culminating early this session.
As stated many times, the bottom may fall out of biotech.
Someone or something in the criminal cabal is going to let loose; fully exposing the real intent of the entire operation.
Recall Prechter’s admonition; ‘price leads the news’
If SPBIO reverses at week 21, with a decisive move lower, it may not be long before news precipitates out into the mainstream.
We’re now two-hours into the trading day.
It’s typical for SPBIO, to begin its erosion (discussed here). Let’s see if it can retrace the sharp down move from the early session.
Stay Tuned
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.
However, those fully immersed in their evil, are not aware when sentiment changes.
How can they be?
They don’t have the discernment (a God-given gift), that lets them know when the jig is up.
The statements made by the organization’s CEO listed in the title block, sorry, you’ll have to do your own search, we’re not providing links for what should be obvious reasons, has instantly brought the entire ‘charitable foundation’ schtick under suspicion if not outright exposure.
The visceral response to those statements was immediate.
Complexion of the so called ‘charitable’ industries has forever changed.
Has sentiment for the biotech euthanasia project changed also?
As always, price action is the final arbiter. Anything can happen.
Chart Analysis: Biotech, SPBIO
At this juncture biotech and specifically SPBIO, has pivoted decisively to the downside.
As with yesterday’s update, the daily SPBIO chart is inverted and annotated:
The ‘repeating trendline’ concept that’s been discussed for nearly the entire seven week corrective period, is included above.
This time, it looks like we’ve reached the right-edge.
Stay Tuned
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.
Over the past seven weeks, as the biotech indexes worked their way through a corrective retrace, there were no guarantees we’d get such an obvious reversal.
A market disconnect could have happened at any time (and is still a possibility).
At this juncture with SPBIO, penetrating and rejecting a prior resistance area, we’re likely on the way to much lower levels.
The daily SPBIO is below. The next chart has it inverted with notations added:
Inverted. Notations added:
We see penetration below the blue line support area. This sets up the Wyckoff spring condition (up-thrust, non-inverted).
The last update, showed thrust energy already divergent; set for reversal.
Note:
The criminal behavior within this sector continues to mount by the day.
Operating with impunity.
When, how, or if that breaks out into the open, is the big unknown.
SPBIO, Character Change:
One of the benefits (if you can call it that) of having a position that’s eroding by the day, is that you get very intimate with the behavior of price action.
Consider it an ‘opportunity’ to focus the mind.
The typical behavior of SPBIO (and inverse LABD), is to establish the day’s trading range within the first two hours of the session.
Consider those two hours as the ‘head fake’ as that range is then eroded throughout the rest of the day.
Today’s session has been no different. A wide range established early but here’s the change; There’s been little, to no erosion.
As if on cue, during the third hour of trade, SPBIO attempted to erode the range. Inverse LABD, shown below.
However, that attempt appears to have been rejected:
As of this post, price action can’t get itself (appreciably) back into the early morning’s range. The character of the index has changed.
Stay Tuned
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.
In the entire history of the market, that’s never happened before, either.
Biotech Backdrop:
We’ve got empirical and anecdotal evidence pointing to the real objective of the ‘experiment’; now, we’re fortunate enough to have a data analyst doing what the medical establishment used to do.
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.
Sentiment can’t be seen on the chart. One can guess but it can’t be measured directly.
Sentiment change comes first.
That change in turn, results in a change of volume, i.e. ‘commitment’.
Then, after commitment dissipates, price is next.
That looks like the current situation with biotech and specifically inverse fund, LABD.
In what may be an idiot or genius move (depending on outcome), the short in biotech SPBIO (via LABD) has been maintained throughout the current down thrust; not advice, not a recommendation.
The reasons for that decision have as many layers as the proverbial onion. Not the least of which, is a market break anywhere from 20% to 50% (in our view) can happen at any moment.
‘Never happened before’, one might say.
Oil futures in their entire history have never gone negative before, either.
Bonds, in their entire history have never been shorted by four-standard deviations before, either.
A world-wide coordinated push to euthanize the entire population has never happened before, either.
Margin debt and valuations have never been higher before, either.
Underlying liquidity has never before been removed to the current extent, either.
So, we each have our own reasons.
The firm’s main account (not the Project Stimulus account) has drawn down about – 13%, on the current short position.
A core position has been maintained but small amounts have been removed and added based on price action.
When the anticipated gain, is high hundreds of percent and maybe above 1,000%, the draw down above, looks acceptable considering the (potential) opportunity.
On to the chart:
The daily chart of LABD, shows both net downward price action and thrust energy are dissipating.
Note the ‘Force Index’ scale has been accentuated to better show the divergence.
We’re looking for price to move back higher to test support/resistance areas.
If or when it does, the plan (as has been from the beginning) is to continue to add LABD until volatility makes it prohibitive.
Stay Tuned
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.
Crisis will create opportunity for leadership; at this point, there’s not much if any in the financial sector (i.e. ‘best ever’, above).
When the big melt-down hits, leadership’s not coming from the ranks of the ‘compliant’ or the enforced mediocrity of the ‘fiduciary’.
Therefore, we can all take our cue; like this Irish couple who took it upon themselves, to separate from the crowd and escape quarantine.
With that in mind, on to the markets:
Analysis, Biotech
As we head towards the close with about twenty minutes left, the S&P 500, has posted an all-time high.
Biotech, SPBIO and IBB, are still well below their highs but are nonetheless at a point of instability with today’s action.
As the Hourly chart of LABD shows, we’re at the danger point and in spring condition:
A push back into the range above support, is significantly bullish for LABD and bearish for SPBIO.
Stay Tuned
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.
For what seems the longest time, a recurring focus of this site has been the biotech sector.
Specifically, the IBB (ETF) and SPBIO (Index).
There’s good reason for that. In this update, we’ll go deeper into the downside opportunity.
Biotech Reversal:
SPBIO, topped out on February 9th this year. The IBB (ETF) topped one day later.
Both went on to form a Quarterly reversal bar; indicating a long term change in character.
Of the two, SPBIO has showed more weakness having posted monthly lower lows for three successive months.
That relative weakness over the IBB index, has resulted in focusing on the inverse of SPBIO; specifically the 3X inverse, LABD.
Working with leveraged inverse funds is only profitable on a short-term basis or when the underlying index is in a persistent down-trend.
Otherwise, typical market chop results in value erosion of the inverse fund (not advice, not a recommendation).
For the reasons discussed in the last section below (Nuremburg 2.0), we’re anticipating the index to have a sustained and persistent drop to much lower levels.
Downside Projections:
Going way back to Reminiscences of a Stock Operator and the Wyckoff Stock Market Institute training materials, both in their own way indicated a speculative position was only entered if there was sufficient potential.
Livermore’s 10-points or more and Wyckoff’s cause and effect
In Wyckoff’s case, the ’cause’ was price action congestion built up in the P&F chart.
The ‘effect’ was the resulting move.
Which brings us to now:
Many times on this site, we’ve said biotech has built up congestion in a way, when it reverses and begins its decline, price action itself will create lower targets.
We’ll present two charts showing how that’s happening.
The first P&F chart in this update and provided below, has a projected downside target for IBB around, 116 – 120 area:
Note, the downside is not to scale as the real location is far below the noted area.
Biotech IBB, then went on to post lower action. That in turn has resulted in an updated downside target:
Once again, the downside is not to scale.
It’s apparent, as IBB heads lower, it successively builds lower targets and it’s only (potentially) just getting started.
The weekly chart of IBB below, spells it out:
If and when IBB price action gets to the initial targets, it enters a congestion area that will (by that time) be over seven years wide.
If the trend is still down, that congestion in turn would target even lower levels.
The “-80%” interestingly enough, comes from a quote by Steven Van Metre at this link.
That 80% drop also corresponds to a downside Fibonacci (not shown) projection of 423.6%, on the above chart.
Nuremberg 2.0
This phrase has become so ubiquitous you can do a search for it.
So far, not a single mainstream financial site or YouTuber (still on that platform) has mentioned this fact in their analysis.
The speck injections are mass genocide and intended as such.
Two recent events resulting from injections are here and here.
If all of a sudden, injected pilots can’t fly (the first link), how are goods going to be transported?
Not generally known to the public, commercial air-transport is also used to haul freight (while carrying passengers).
Exactly how all of this (world crime) will break is unknown.
If and when it does, the result in the biotech sector as well as equities in general, could be successive air-pockets all the way down.
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® 