Biotech & Fibonacci Time

8:39 a.m., EST

SPBIO, pivots at Fibonacci Day 89

LABD inverse fund (3X inverse SPBIO), marked with time pivots and potential channel.

The plus or minus one-day on the Fibonacci counts, is well within acceptable limits.

There’s been so much focus on biotech because of the opportunity.

Trading congestion equals directional potential.

A good way to show that (downside) potential, is with the P&F chart of biotech IBB, below:

The initial projection targets the 120-area which is below the support levels at, 143 – 145. If penetrated, those support levels would likely become resistance to any upward retrace.

We’re about an hour to go before the regular open. LABD is trading flat to slightly higher.

Stay Tuned

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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.

Moderna “Throw-Over”

11:35 a.m., EST

Price action posts new weekly low

Now, back into the (wedge) range

In a situation that’s straight out of any typical trading text: ‘When a market goes into a throw-over and then enters back into the range, it’s a classical analysis sell signal’ (not advice, not a recommendation).

That’s where Moderna (MRNA) is now.

Moderna’s the ‘chief cook and bottle washer‘ for the world-wide kabuki theater. So, we’re using it as a proxy for the biotech sector as a whole.

Separately, biotech index IBB, is retracing but has not posted a new daily low.

Inverse SPBIO fund LABD, has formed an hourly reversal bar and looks to be forming a daily reversal bar. As of this update, it has yet to post a new daily high.

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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.

Biotech Update

3:29 p.m., EST

A close up look at 3X inverse, biotech LABD

Being inverse leveraged 3 to 1, this vehicle is amplified; sector changes in character can be picked up earlier.

What’s clear is the net distance traveled by downward thrusts is narrowing … down to nothing.

It could be a pause before heading lower or it could be that downward action is exhausted.

As we head into the close, price action can be seen slightly retracing upward.

We won’t know if that’s all for the downside until LABD posts another (new) daily high.

Analysis Tip:

LABD made a new daily low during this session.

The interesting part; it had to post a new daily high (above yesterday’s high) to get to that low.

That’s the only way it could get enough fuel (i.e. create price instability) to push just 0.08-points lower … potentially signaling final exhaustion.

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.

Dollar Divergence: Update

2:37 p.m., EST

Dollar penetrated support and is reversing

Potential for sustained, persistent rally

Wide trading range

Looking at the weekly close chart, we can see the wide range.

In addition, there’s a significant bullish divergence that (technically) gives the dollar, UUP, enough energy to test the top of that range; a potential that’s completely opposite the current narrative.

A this juncture, silver, gold and the miners are still correlated.

Yesterday, a potential top and reversal in miners GDX, was identified. Today, it appears to be hovering and looking unsure of its direction.

GDX has not posted a new daily high or low as of this update.

A sustained dollar rally (along with the bond market?) would be unexpected given what seems to be apoplectic hyperinflation ranting.

Separately, in biotech, the market (IBB) has stalled to the upside in a higher than expected test. Inverse fund LABD, made a new daily low and it too, has stalled.

Downward thrust energy on LABD is dissipating.

Technical update for biotech, planned for tomorrow … market permitting.

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.

Possible Blow-Off Top

11:41 a.m., EST

Biotech IBB: Straight down in early session

Support at 153 – 154

If IBB’s going to test by moving up to underside of resistance, that support (153 – 154) would be a good place to start.

If we just had a massive short squeeze, support may not hold and IBB just continues on down.

The other biotech index, SPBIO, is performing in a similar fashion. Inverse fund LABD is up sharply as of this post.

Several updates on biotech, IBB and SPBIO have mentioned ‘collapse’.

A future update will provide some perspective on the potential downside for the sector

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.

Just Doin’ My Job

1:31 p.m., EST

If there’s going to be a big move, it’s the market’s job to make sure you’re not in it.

We’ve already had the push below, and reversal from, established support on inverse biotech LABD, May 28th.

At this point, we’re in a test that serves two purposes:

Frustrate the impatient and run the stops on anyone that’s incorrectly positioned.

The circled area on LABD, in the daily chart is shown on the hourly below:

Anyone that set their stop at the low of Wednesday, June 2nd (in what looked like a good location) has been stopped out.

On top of that, note how once that location was penetrated, price action ‘stopped dead’ (pun intended).

That’s the key.

Once the stops are cleared, there’s no more energy left to move lower.

As of this post, LABD’s already reversing from this area; supporting the hypothesis.

Positioning:

Short position in biotech SPBIO, via LABD, is being maintained; not advice, not a recommendation.

Summary:

The more this market gyrates and attempts to throw off participants, the more it looks like something big is in the works.

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.

Controlled Insanity

1:32 p.m., EST

It’s not ‘controlled opposition’

It’s controlled insanity

The masses (maybe all of us for that matter) have to be kept on edge just enough to be easily advanced to the next level of narrative.

Case in point, is this link.

It’s just one more piece of pre-programmed trash that’s attempting to control the public’s perception and direction.

“Globalists Losing Narrative”

Give me a break. Globalists aren’t losing anything. At least, not yet.

Markets & SPBIO

The overall markets are still hovering at all time highs; even as reports like this one, continue to show that everybody’s all-in on an unprecedented scale.

Evidently, they have no plan for down … where the real money’s made.

Moderna’s (MRNA) in its second day attempt to breakout higher; all the while, the index itself (SPBIO) continues to edge lower.

The 2-Hour chart of LABD below, shows a potential trend.

As with previous analysis comments, we’re looking for a trend the market itself, says is important:

It’s clear, the trend (above) has been repeated several times in LABD’s own price action.

LABD itself, tells us to pay attention.

The right side trend line might not look like much … but it’s rising at about +45,500%, on an annualized basis.

Positioning:

A break of this trend does not necessarily mean we’ll exit out Project Stimulus position; not advice, not a recommendation.

We’ve got the hard stop discussed previously at LABD 21.77; again, not advice, not a recommendation.

Summary:

While the retail traders/investors (the only direction they know is up) go collectively insane, we’re keeping under the radar and quietly maintaining the short positioning in biotech.

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.

‘The Race’

10:26 a.m., EST

The Race To The Fall

No, it’s not a race to full ‘injection’ as the article at this link implies.

It’s a race to have as many immune systems compromised (destroyed, probably more accurate) before the regular flu season.

If the alternate data (more on that below) is even half-right, that’s when the real effects kick in.

Of course, anyone still watching mainstream outlets will be led to believe it’s some kind of ‘triple mutant variant’, that requires a ‘booster’.

It’s as ridiculous as ‘Double secret probation

There’s an entire segment (possibly, a majority) of the world population that would suffer a mental collapse if they discovered the truth.

Instead of searching for truth, they grab the jack-boot (of injection) ever more tightly in a vain psychotic hope their executioner will spare them.

That sentiment is supported by reports of second injections … even after the fist one is nearly fatal.

Which brings us to the biotech sector.

Analysis:

In the first thirty minutes of trading, we can see SPBIO, has made a new daily low with inverse LABD (below), making a new daily high.

That price action helps confirm (no guarantee) that we’ve pivoted at the 23.6%, level as discussed earlier in this update.

If SPBIO continues to erode from here, it’s indicating potential for a sustained, possibly dramatic move lower.

If the reports found on alternate sites (here and here) are true, biotech is destroying its own customer base; most of that base may be gone by the end of the year:

The ‘race to the fall’, indeed.

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.

Random Notes

The usual suspects for the week.

No.1

During the 1918, Spanish Flu, only the speck injected died.

No. 2

Published numbers (if you can believe them) say 38%, of those in the U.S. have received speck injection.

It’s gets interesting when you crank the numbers for Russia.

Using population data from this source, only 3.7%, of them have received the same injection:

About 90%, less than U.S.

Guess who’s coming to dinner?

Meaning, guess who’s going to be in a better position from a military strength and health standpoint.

No. 3

Here’s a cheap, effective defensive tool. Looks bad but it works.

I had the former owner of Texas Tactical, tell me one time …

“Whatever the .45 hits, is coming off.”

Here’s a reminder of what the .45, can do: Time Stamp: 0:39.

Dead before you hit the ground.

No.4

“The best way to control the opposition is to lead it ourselves.” – Vladimir Lenin

No. 5

Legitimizing the lies

Just 17-seconds into this video and we have our answer whether this is news you can trust.

Useful idiots.

See No. 9, below for an update on what’s really going on.

No. 6

Working through comments on ZeroHedge, brings up this link, on mind control.

No. 7

Clouds on Mars. Really?

With atmosphere just 1% of Earth …. that’s one-percent; somehow we get clouds forming that have a strangely familiar ‘metallic sheen’ to them just like you see after a high level ‘spraying’ right here on Earth.

No. 8

“Virtue signaling little turds”

Time stamp 1:57, at this link lays it out.

The plus side; As we get closer to the fall (regular flu season) … just months away, everyone’s going to have a fantastic opportunity to find out what there’re really made of.

Bravery’s like a muscle. It needs to be exercised often.

Time to get the popcorn ready.

No. 9

‘Speck injection stakeholders are going to be disappointed with the success of the program’ (time stamp: 2:08).

Yes, indeed.

It’s possible the fundamental and technical conditions of the biotech sector are lining up.

As Dr. Elder said in his book years ago, when this type of alignment occurs, the resulting move can be extremely powerful.

We’ve just had a potential test and downside reversal of SPBIO at the 23.6%, level; an indication of severe weakness.

No. 10

Peer reviewed stupidity

This one’s a corollary to No. 8

In a way, it’s nice to see that mediocrity, stupidity and laziness may be set for a thorough house cleaning.

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.

Biotech: Now, It Gets Interesting

1:39 p.m., EST

Retrace to 23.6%, rejected.

Shallow retrace indicates severe weakness.

Sustained downside potential.

The inverted chart of SPBIO above, shows price action has touched the 23.6%, level and is reversing.

The next chart has yet another Wyckoff spring set-up … equivalent to a Wyckoff ‘up-thrust’ on the regular, non-inverted chart.

Inverse fund LABD, is current trading at 22.77 – 22.83; far away from the session low at 21.77.

On a 4-Hour basis, the current bar has posted a new high.

The high for the morning session came at the open; 23.05

That high was exceeded when the next 4-hour bar posted at 23.10.

Why is that important?

It weights the probability to the upside for LABD.

That in turn weights probability we’ve seen the last of the downward corrective moves for LABD.

If so, we’re positioned for a major decline in biotech SPBIO.

If not, we’ve got an absolute hard-stop @ LABD 21.77 (not advice, not a recommendation)

At this point, it’s time to “Set the stop and walk away” as David Weis put it in his video.

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.