It’s a crazy business model; systematically destroy your customer base.
Said many times in these updates, attempting to match fundamentals to technicals is usually not successful.
Referring back to Ed Seykota, in his ‘Market Wizards‘ interview, he said using fundamentals as a basis for positioning, rarely if ever, worked.
Still, it’s undeniable something very wrong is going on in the sector.
Our market table has been updated and we’ve included the S&P Biotech Sector, SPBIO:
All markets are within fractions of a percent of all time highs except for semis, mid-caps and biotech.
The S&P biotech is down a whopping, 25%.
It’s already well in bear market territory.
Since we’re working the short side (not advice, not a recommendation), the focus is on biotech and specifically LABD.
The fund attempts to track the 3X inverse of SPBIO.
With that kind of leverage, LABD has significant downside bias. Positioning (from experience) is best suited when the move is sustainable and persistent.
Looking at the chart of LABD, we could be there. At this time, the fund is trending higher at a stiff +820%, on an annualized basis.
Our Project account is positioned as shown. Since the account’s not large enough to enable leverage as determined by the broker, we just have to wait it out till it gets there (currently set at $2,000).
Stated in The Rich And The Super Rich (if memory serves), not since Marie Antionette have the ruling oligarchs allowed themselves to be out in the open.
Seems like her demise cured them of having to get (direct) attention.
That would mean, people in the public eye at this point, are just useful idiots. And when their usefulness has run its course … ???
From watching them, it’s obvious they’re delusional … thinking they can tame evil (even harming children) and escape wrath.
The wheels are falling off the ‘speck’ false narrative; tragically so.
The following is taken from the comment section of the video post:
From the guy who filmed :
“Less than 5 minutes from getting God knows what injected inside them the two people to my left starting having seizures. First the gentlemen in the red car was watching in shock as the driver next to him was having a seizure. Little did he know he would have one right after him. I called the medics to help him. They have a procedure where after you get the shot you have to wait in the car for 15 min and if something goes wrong to honk your horn and someone will show up. Well these folks to my left just passed out into seizures with no warning.
You would think it’s just a matter of time before this reaches some kind of tipping point; where enough of the herd realizes all at once, the lie.
The last post has us breaking the rules. Was that the right thing to do?
This morning’s price action has the answer: Yes.
The Project Stimulus table has been updated to include the new (hard) stop level. With LABD currently up a good 5.50%, and looking to move higher, it’s not likely the stop will be hit.
There is one caveat: As of this post, IBB has not printed a new daily low. That leaves the (slight) possibility open for a move higher.
Several attempts have been made to short biotech via LABD (not advice, not a recommendation). It looks like the current attempt is underway.
The link, located here is an interview with Reiner Fuellmich, a lawyer (a good one) that’s been at the center of the ‘speck’ investigation since inception.
This one interview, all nineteen-minutes, thirty one seconds, is probably the best summary of the current situation.
The link above comes with a warning:
If you’re one of those still asleep, after watching the interview, you’ll never be the same. You’ll be forever changed.
To put it biblically, “Your eyes will be opened”.
That is, if this lie can be perpetrated world-wide (as it has), then what does that say about all other media generated propaganda: the (stolen) election, the fake oval office, the fake executive orders, the fake insurrection.
The examples above are just from the past six-months!
For emphasis, we’ll throw in one more link that seems un-related but it’s not; it shows just how long events have been purposely shaped to fit a narrative.
Of course, this ‘thought shaping’ goes back even farther … if not a hundred years or more.
So, what’s all this have to do with the markets and specifically biotech, IBB?
The interview’s implications for biotech are clear.
David Stockman has a post located here whose title sums it up nicely:
‘… a scam like no other’.
It’s just a matter of time before the public is either awakened or severely, permanently, damaged by following (and believing) the lie.
This time around, cemeteries are likely to be overrun … for real.
If that happens, repercussions to the biotech sector would (likely) be severe to catastrophic (down -90%, maybe?).
Even though a few within IBB are directly involved, all are likely to take a hit
In our Project Stimulus table, we’re short biotech via LABD (not advice, not a recommendation). The stop has been moved above break-even.
It’s important to not let fundamentals (above) bleed into market positioning. It’s impossible to say when or if fundamentals will take control.
What we have now is IBB looking as if those fundamentals are providing a backdrop for technical action (described below). However, technical action can change instantly.
Biotech, IBB Technical Analysis:
Typically, this morning’s action would signal a ‘short exit’ or ‘go long’; when price action immediately gaps above the prior session high.
However, we already know on a long term (quarterly, monthly, weekly) basis, IBB has reversed. That does not mean price can’t go into some type of truncated rally … it can.
What the long term momentum says, if a rally occurs, it’s likely to be short and reverse quickly.
As of this post, it looks like whatever rally there was, it was over within the hour.