Category Archives: JDST-25-02

Biotech Looks Ready … For Lower

March 5, 2025 By in $SPSIBI, Biotech, GDXJ, JDST, JDST-25-02, LABD, LABD-25-02, Positions, SPBIO, Wyckoff, XBI 2 Comments

Breaking Down … Finally?

You have to wonder, is the curtain ever going to be pulled back on biotech?

If we use the empirical trading adage, ‘When price goes south, bad news comes out’, we may be getting close.

Biotech XBI, has gone sideways for months; oscillating in a trading range; that is, until now.

Biotech XBI, Daily

Two charts are presented. The first is a compressed view of the daily action, showing the trading channel.

The second is a closer look, with potential down-trending channel.

The two magenta lines correspond to the blue lines in the first chart.

Note how XBI, penetrated support and by definition, entered a Wyckoff ‘spring’ condition.

The market response was to initiate a rally but today, that rally appears to be failing (not advice, not a recommendation).

Positioning

First, some housekeeping.

Short trade on miners GDXJ, JDST-25-02, was closed at about break-even.

As of this post (11:48 a.m., EST) GDXJ, is just penetrating resistance at 51 to 51.5 … a potential up-thrust set-up.

Now, on to biotech

Short trade initiated in biotech via LABD, labeled as LABD-25-02, with stop at the LABD session low (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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®, trade mark: No. 6,505,279

Miners Reduce (short) Risk

March 3, 2025 By in GDXJ, Gold & Silver, Gold Miners, JDST, JDST-25-02, Positions, Wyckoff

Less, Does Not Mean, None

When you’re at price extremes whether up or down, many times the ultimate direction is unknown.

You’ll know when you’re at that (on-the-edge) spot, if it’s like Wyckoff’s description from over a century ago:

‘It’s as if the weight of a feather can move the market in either direction’

The good part, today’s potential-now-actual scenario, was previously covered in this update:

“What we’re looking for in the coming week (best case) is to see continued GDXJ, upside to close the distance to the resistance area; thus reduce (but not eliminate) the risk.”

Junior Miners, GDXJ, Weekly

Actually, the risk is probably less than the 0.82-pts shown.

Price action would need to continue through resistance (blue line) to get to the stop; possibly giving ample time to exit a short if so positioned (not advice, not a recommendation).

As can be seen in the side-bar, a short has already been opened; executed early in the session using leveraged inverse fund JDST.

Trade: JDST-25-02, with stop at today’s low (not advice, not a recommendation).

Against The ‘Spin’

Positioning short is against the current mainstream ‘spin’ on why this sector has not launched higher.

You’ve heard it before, they call it a ‘buying opportunity’

This site refers to the non-confirmation of the miners (with gold at all-time highs) as “something wrong” 🙂

We’ll know soon enough.

Stay Tuned

Charts by StockCharts

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®, trade mark: No. 6,505,279