Moderna (injections) Suspended

Biotech, Bricks In The Wall

Complete Implosion.

This site’s been steadfast for over a year; biotech above all others, has the highest chance of sustained, long-term collapse.

‘Collapse’ is an overused word these days. It may have lost some meaning.

How about the word ‘exposure‘?

Biotech has the highest chance of being exposed (not advice, not a recommendation).

Sweden Suspends Moderna:

There it is out in the mainstream: Indefinite suspension.

About a week ago, the fist bullet item in this list discussed Moderna; that when price action reverses to the down-side (after being a market darling), the lawsuits start.

It’s not the lawsuits themselves, but the discovery process that’s part of the trial … if it goes to trial.

One can guess with some assurance, the last thing Moderna wants is for this baby (any potential lawsuit) to go to discovery and trial.

This could be one of those times, popcorn is justified; watching it all from the sidelines.

Southwest Backs Off:

Looks like greed is more powerful than jabs.

At least we can see the priorities and keep that for future reference.

Now, all-of-a-sudden, it makes no sense to destroy executive stock options with forced collapse of the organization.

Glad we have such genius executives in charge. 🙂

Meanwhile, Back At The Ranch:

While all that’s going on, we still have the financial press talking about earnings and sales and ‘pent up demand’ like any of that is important or actually real.

The only reality at this point in time, is the price.

Biotech SPBIO, Inverse Fund LABD Analysis:

We’re going to start with the un-marked chart of SPBIO:

Next, we’re going to invert that chart; giving a better perspective of what the inverse fund LABD, is tracking:

Repeating a previous observation; price action over the last two months (from late August to now), has calmed down.

Price range has narrowed and movement looks orderly.

Our take on this; bears have assumed control and are preparing (opening positions) for a directional move.

Compared to my firm and probably anyone reading, their capital is unlimited. They’re also patient.

Depending on the level of greed, they’re keeping price action from a major breakout until positioning is complete (not advice, not a recommendation).

Wyckoff termed this phenomenon (a century ago) as the ‘composite operator’, or the ‘central mind’.

This is how markets work. There’s no getting away from it.

By making a transaction, any transaction, one has implicitly entered the ‘arena’ where the gladiators (the professionals) are ready to take all you own.

Moving in a little closer, we already have a trend.

Price action bounced off support on Friday (resistance on the inverted chart) but closed nearly unchanged.

Summary:

When you have satire like this and especially at time stamp 6:35, the pressure continues to build … almost from all sides.

My firm remains short SPBIO via LABD (not advice, not a recommendation).

That is, until the market itself says the bearish analysis is wrong or it’s time to exit.

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 Danger Point®, trade mark: No. 6,505,279

Random Notes

The Usual Suspects For The Week

No. 1

Moderna: Bad News On The Way?

Whenever a high-flyer darling stock changes course and reverses down in a big way, the lawsuits start.

‘Investors’ only know one direction … up.

They figure they’re so smart, any decision from them that does not work out, must be someone else’s fault.

Class Action for Moderna (with discovery) may be dead ahead.

MRNA is currently down – 34.8%, from its all time highs.

Let’s start our stopwatch and see how long it takes for the first ‘Notice’.

No. 2

‘How To Short The Dollar’

Well, if you need to know how to do it, you shouldn’t be doing it.

No. 3

Gold Pontifications

You don’t have to go more than 1:18, into this interview to get an inaccurate definition of inflation.

With that said, it does not keep the (delusional) bugs in the comment section from eating it up.

The interviewer, if he had the strength, could have stopped it right there and challenged with: ‘Inflation is defined as the expansion of credit that results in increased demand that in turn results in higher prices.’

At this point in time, we’re in credit destruction (i.e. Wells Fargo shutting down credit lines) not expansion … um, which is deflation not inflation.

Look at the velocity of money; enough said.

Moving on, there’s possible miss-direction at time stamp 11:40.

Anyone talking about that subject as something that’s real (other than this type of real) is at best, disingenuous.

What’s in the media is there for a reason.

That reason is to shape your thoughts and keep you thinking ‘inside the box‘.

Ending this item on a humorous note, years ago, probably 2003 – 2004, I had signed up for several Dr. Elder webinars.

During one of those, he made an off-hand comment to the effect:

‘Never trust a bald man who wears a hat indoors

Not kidding.

His son, who was the moderator at the time, immediately went into damage control; posting apologies directly into the live stream 🙂

No. 4

Lions and Tigers and Bears … Oh My!

Now we need to inject zoo animals.

You can’t make this stuff up.

Who knows when or if the tide will turn.

At this point, it looks like there will be complete destruction first which brings us to the next bullet item.

No. 5

Only Problems. No Solutions

Personal Anecdote. Skip to No. 6, if not interested.

Back in the day as an Engineering Manager, there were times an employee (usually an engineer) would walk into my office and give me a list of problems on a particular project.

If this happened a second time, I would sort of gently (maybe) let them know, ‘If you bring me problems, you need to have solutions as well.’

I also let them know, if they were not able to come with solutions, I would map out a long-term action plan (basically starting documentation for termination) for their continued development.

How many YouTube sites talk endlessly about the problem?

It does not take much effort or thought or creativeness to tell us what we already know.

This site not only presents the problem(s), but also presents potential solution(s) or action(s).

Example:

Problem: Markets stretched to valuations beyond historical extremes. Traditional methods of analysis (P/E ratios, Book Value. etc.) no longer work. The market could ‘disconnect’ and be unavailable to trade for days or weeks at a time (think Klaus Schwab ‘cyber attack’).

Solution: (not advice, not a recommendation):

Identify a market and trading vehicle that has its own direction and is separated from the overall mass-hysteria. Position ‘in and out’, as required in that market until such time there are other opportunities of similar potential.

That market thus far, has been identified as biotech, SPBIO. The trading vehicle is LABD (not advice, not a recommendation).

Any disconnect or surprise event is already factored in as a likely positive for the position taken, i.e. being short biotech

We’re not only taking this approach for the current market environment but the supply chain as well.

The supply chain shut down and the potential famine that will ensue, is one of, if not the main reason(s) silver and gold may be of no use (at least temporarily) in the troubles to come.

They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD:

At this point in time, I’m sticking with Ezekiel.

No. 6

Mr E Is Back

Back in the day, before YouTube did its purge, we had Mr. E.

Evidently he was verbally abused in an elevator by a hoard of the mindless and masked.

This video is his response.

No. 7

Taboo, Scaboo

Well, it would not be a compete ‘Notes’ update without mention of Scaboo.

Here he is at his new home … a few miles north of town.

As mentioned in the last update, the hen that gave him trouble at the outset, well, he’s got that all sorted out.

According to his new owners, he takes his job seriously.

He protects the hens and is meticulous about getting them into their coop at night. He then goes to his own coop; sort of a personal man-cave.

This picture was taken by the new owner.

You have to figure they must be pleased with him to wait long enough to capture such a majestic pose.

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 Danger Point®, trade mark: No. 6,505,279

Moderna Djab, Investigated

Before The Open

But Don’t Expect Anything

Round up the usual suspects.

Make it look like we’re doing something.

Our ‘parabolic’ report on MRNA, was posted before the open, August 10th.

That post included the following summary:

‘This is the type of parabolic rise (and blow-off top) typically seen in commodities.’

Then, about seven minutes after the open, MRNA peaked and reversed into a two-day collapse over -25%.

Down-thrust energy, the amount of downward force in price action, was literally off the chart; the strongest ever recorded since MRNA, started trading in December of 2018.

Price action leads the news. This case was no exception.

This report, just out on ZeroHedge shows there’s a half-hearted attempt to draw attention to a so-called ‘rare’ side effect.

Even so, the insiders probably figure the jig is up and they’re bailing out.

The biotech sector (SPBIO) continues its bear market decline. Yesterday, it closed down over -32%, from its February 2021, highs.

Looking at MRNA, we see a now familiar set-up:

‘Spring to Up-thrust’

A casual look at MRNA, and you can see shades of 1929, in the price action.

We’ve had the ‘crash’, the 25% decline followed by a weak rebound.

Now, there may be a sustained and long term decline (months, years) ultimately bringing MRNA, below its all-time trading lows (below 11.54).

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.

Moderna, goes Parabolic

8:07 a.m, EST

Trending @ 5,000,000 %, Annualized !!!

The MRNA daily chart shows price action trending higher at roughly 5-million percent on annualized basis.

This is the type of parabolic rise (and blow-off top) typically seen in commodities.

Obviously, you can’t keep 5-million percent going for long.

Moderna has now taken over Amgen (AMGN) as the largest cap in the IBB, biotech (ETF) index.

Amgen’s been trading since June 17, 1983. Moderna started just a little over two and a half years ago.

But let’s take a look at what’s really happening … what’s really going on behind the apparent good fortune of MRNA.

At one hour 22-miuntes and change, this link provides the most succinct account (to date) of the situation at hand.

Names, dates, places, patent numbers … it’s all there.

Pre-market trading in MRNA, shows a flat to slightly higher open.

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.

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.

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.

Moderna: Reversal Review

‘Reversal at hand’ said the prior update

Reversal still imminent?

MRNA has pushed above resistance on declining volume (shown above) . The next chart has MRNA in a terminating wedge pattern:

Price action this past week has just contacted the top portion of the wedge.

MRNA is the fifth-largest cap equity in the IBB index. Its market moves have a definite effect on that index.

IBB, shown below:

On Friday, the market eased back a little. Will it come back to test the resistance area next week?

There’s no doubt about the wide high volume bar. That day (last Monday) posted the highest daily volume in four years.

Wide high-volume areas are usually tested.

It just so happens, that wide area is below resistance.

To test the wide bar, price action would need to move below the resistance area. Doing so, would put a Wyckoff ‘up-thrust’ into play.

The next chart shows another resistance area not easily discernable:

Although somewhat hidden, there’s another resistance level that for now is putting a limit on the upward travel of IBB.

Summary:

MRNA’s at an extreme. The previous update linked to a site which shows insiders bailing out in the tens-of-millions of dollars.

The bond market, with its upside breakout is not confirming the ‘recovery’ narrative.

The dollar is reversing as well.

Gold and the miners have stalled; potentially reversing.

The narrative is shifting as the media (all controlled don’t forget) has decided on its sacrificial, e-mail lamb.

Don’t worry, nobody’s going to jail. It will just be another distraction to keep the mask wearing masses from getting prepared for the fall.

As a reminder, this is how they think; ‘Just doing the right thing’ Almost like ‘Just following orders’.

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.

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.

Creature From The Black Wuhan

1:04 p.m., EST

How long will this side-show last?

Once you’re awake, diversions like this one, have no effect.

Well, none almost, other than to be reminded the powers that be have absolute contempt for those that aren’t in their global club.

You have to wonder, what’s next? Maybe it’s time for the (fake, or real) alien invasion.

Maybe we’ll have a few more ‘planned’ cyber attacks … who knows?

Meanwhile, back at the ranch, it’s more than a bit interesting the biotech sector with its quarterly reversal, weak 23.6% retrace, and now continuing downside (so far), is not a major topic of discussion.

This morning, Moderna’s (MRNA) attempting a breakout. It won’t look so good if it can’t close higher for the day.

The last update showed MRNA, insiders bailing out.

SPBIO looks to be establishing or confirming a downside trend-line. More on that if/when there’s confirmation.

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.

.

Moderna, Reversal At Hand

Insiders are bailing out. The jig is up.

Insider transaction data at this link.

MRNA has not been around long from a trading standpoint.

Long enough though, for a quick 1,000% price increase so insiders can bail with huge profits; leaving the bag to the uninformed retail ‘investor’.

SeekingAlpha:

A quick search of the proletariat at SeekingAlpha turns up several ‘analysis’ articles on MRNA.

Specific links won’t be provided.

We’re not going to provide links and justify the brainwashed, everybody’s thinking the same thing mentality that seems to permeate the site’s ‘presenters’.

Incredibly, the last three articles on MRNA do not contain a single price chart. It’s hard to say where a company is headed without consulting the truth; that is, price action.

Search MRNA if you like but be prepared to hold your nose.

To be fair, the comment section on the latest Moderna post does have a few frustrated souls attempting to get the word out.

It’s a futile effort to argue … no one can tell the difference and the sane person looks to be insane.

Spending time either creating articles for SeekingAlpha or commenting on such, is a waste. It’s a distraction (like attempting to locate the source of the ‘speck’) from the real work at hand.

However, it does provide a fantastic insight into the current group-think.

Biotech Sector:

The last update on SPBIO, had it testing and reversing at the Fibonacci 23.6%, level.

The index could continue lower without delay. Or, as is typical market behavior, it will attempt to re-establish some kind of upward move.

Updates on the sector to be forthcoming based on price action.

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.

Only the Beginning?

Biotech vaporization could go thermonuclear.

That was a potential outcome proposed in this update, just seven days ago. 

On September 3rd, five days ago, Biotech (IBB) had its largest down-draft since June 11th.

Coincidentally, on that same day, this news was released concerning polio outbreaks in Africa.

Scroll down the article and a familiar name will appear.  It’s also the name that has provided significant backing for Moderna (MRNA).

Moderna has fallen off the radar.  MRNA, with no P/E and no yield.   What?  Nobody wants to stampede into the ‘cure’? 

The top of Moderna was identified in this post.  Along with a summary that enough of the public had been fleeced on the way up; it was time to get them on the way down.

MRNA is now down 34% from the top and down 23% from the last update. 

That might sound cruel or harsh to discuss the markets in this way.  It’s not nearly as bad as what Dr. Elder describes in his first book; Trading For A Living (summarizing):

‘The markets are like a medieval battlefield.  You enter with full knowledge you may not come back.  You are trying to kill your opponent, and him, you.

If you lose, all you own goes to him, including the wife and children.’

So, being part of the herd, stumbling around in the markets waiting to “fleeced” sounds way better.

The original premise of going short biotech was technical, fundamental and political. 

Technically biotech (IBB) is the only sector with a weekly MACD sell signal as identified in this post.  Fundamentally, we’re using Stockman’s assessment the sector is ‘bottled air’. 

Politically, the elites may be starting to fight amongst (and eat) themselves as evidenced by the news release linked above.

Anything can happen and IBB could bounce and move higher during the next session.  From a probability standpoint, the foundation of farce appears to be showing its true identity and origins.

The daily chart of IBB, is following (at this juncture) a Fibonacci projection. We’ve met and bounced off the 61.8% level. 

If the trend remains to the downside, the next projection is 100.00, then 161.80, at IBB levels (blue ovals) 120.00 and 110.00, respectively.

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.