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 top 30% of components for the XLV sector, are drug companies.
Then, comes UnitedHealth UNH, rounding it out to about 36%, of market cap.
No matter what happens with news like this, the overall landscape is shifting, link here.
As for the ‘elephant’, listening to a few select interviews of Ed Dowd via Daniela Cambone, Peak Financial, Gerg Hunter, Thoughtful Money, and others, then, you already know.
Click those names on the side-bar tag, for more research.
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.
As Ed Dowd says in this interview (time stamp: 19:16), somebody in the banking system’s holding The Old Maid.
As the overall markets continue to form what looks to be a top, maybe ‘the’ top, a process of (trade) iteration is occurring.
The objective is to determine which sector is the most vulnerable.
Short positions in the Dow and the SOXX have both been stopped out (not advice, not a recommendation).
With implosion of Tricolor Auto and now First Brands, the market itself is telling us, look at financial sector(s).
With that said, short positions have been opened in XLF, and KRE; both of which so far, are holding below their early session highs (not advice, not a recommendation).
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 United Airlines (UAL), with the precise set-up, four-year wedge, measured move, the top, timed exactly at an earnings release, you have to ask yourself …
Was it all part of a (secret) plan?
Wyckoff Writes on Manipulation
Way back in 1910, Wyckoff wrote the following concerning manipulation (emphasis added, quote used with permission).
“Manipulators are giant traders, wearing seven-leagued boots. The trained ear can detect the steady ‘clump clump’ as they progress, and the footprints are recognized in the fluctuations and quantities of stock appearing on the tape.”
United Airlines UAL, Weekly
When looking at the chart, it all makes sense … it just took over four years to play out.
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.
Serious students of the markets discover quickly enough, price action has nothing to do with forecasts or fundamentals.
Once that mental hurdle is overcome, the market landscape takes on a whole new meaning.
Moving Parts, A-Plenty
At present, there’re a lot of moving parts but a few things are known: the on-going population collapse, the soon-to-be market and currency collapse (or severe de-basement), the possible ‘balkanization‘ of the U.S., just for starters.
Those wheels have already been set in motion.
Within that construct, are the market navigations (trading actions) presented on this site.
Biotech Has Spoken
At least for now, the bears are in control (not advice, not a recommendation).
The minor ‘spring’ set-up, materialized during Thursday’s session, just as this update said was likely.
It’s what happened next, that’s important.
On Friday, the set-up failed; showing the higher probability is for more downside.
Biotech SPBIO, Daily
Price action is posting lower.
The potential trading channel has been re-drawn with the grey lines; indicating the possibility for more aggressive downside action (not advice, not a recommendation).
Positioning
As can be inferred with these updates, I’ve already positioned short this sector via leveraged inverse fund LABD (not advice, not a recommendation).
The stop is Thursday’s high (SPBIO, 6,135.81) which corresponds to LABD 16.66 (interesting, that).
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® 