Underside Test
The chart segment of XBI shows its posted an axis line over the past few months.
There have been oscillations on both sides, with today being an underside test.
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The Danger Point®, trade mark: No. 6,505,279
Dow, S&P, Qs Et al.
The Dow (DIA) all-time highs were on August 5th, the S&P (SPY) on August 13th, the Qs (QQQ), way back on June 3rd; Semiconductors (SOXX), June 22nd, and the list goes on.
We have updates by the day, if not the hour, like this, this, and this, letting us know in real-time, the air’s coming out of the bubble (not advice, not a recommendation).
So, ‘gentlemen, start your engines‘ 🙂
Pick your market
Biotech XBI, Daily
The chart has an added bonus, showing the potential trading channel.
Trade Action: Yesterday, XBI-26-11, was exited at break even, then re-established (short) as XBI-26-12, and well-in-the-green by the close (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Off The Cliff?
We won’t know for sure, until a long time from now … when it’s all over (not advice, not a recommendation).
Yesterday’s action in biotech IBB, posted a new daily high, while at the same time, XBI moved higher but was unable to post a new high.
Trade Action: IBB-26-05, was exited with profit and the short re-established as XBI-26-11 (not advice, not a recommendation).
As the chart shows (blue arrows), that XBI short was increased during today’s session.
Biotech XBI, Daily
We’re still at the far-right side, the ‘supply side’.
If the entire channel is in-effect, the ‘demand side’, is a long way away.
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The Danger Point®, trade mark: No. 6,505,279
Fibonacci Sequence
As far as the markets are concerned, when ‘everybody’ figures out there’s a pattern going on, that pattern morphs into something else.
For now, as the chart shows, it looks like biotech IBB, is ‘respecting’ a Fibonacci sequence (not advice, not a recommendation).
The chart also shows a potential channel.
Biotech IBB, Daily
So far, IBB is pivoting right at, or adjacent to sequence numbers (not advice, not a recommendation).
Next up, would be number ’21’.
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The Danger Point®, trade mark: No. 6,505,279
IBB, Below Support
Amgen was whacked for a -10.08% loss during today’s session.
Biotech IBB, XBI, followed suit; down -2.17% and -1.15%, respectively.
Both indexes retraced during the day; it was noted XBI’s retrace was 50%, while IBB’s retrace as 38%.
Therefore, the trading response was to close short-trade XBI-26-10 (for profit), re-establish that short via IBB, as IBB-26-05 (not advice, not a recommendation).
Note in the chart above, the last time IBB pushed below support, it was in spring position and moved higher the next three sessions.
Markets tend to alternate.
Let’s see what happens next.
Stay Tuned
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The Danger Point®, trade mark: No. 6,505,279
Is The Top, In?
Whether it’s Biotech XBI, Airbnb, CarMax or Carvana, trade set-ups are being worked that take place at the ‘edge of congestion.’
The last update on XBI, was here, August 24th, nine trading days ago.
The short, LABD-26-10 was immediately stopped out at the next session.
The index labored on, grinding in a range while posting a bearish MACD divergence on daily and weekly.
All of which, brings us to now.
The chart shows today’s action could not close above the resistance area posted back in July (not advice, not a recommendation).
There’s been no new daily low (yet).
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The Danger Point®, trade mark: No. 6,505,279
Potential Set-Up
Over the weekend, Greg Hunter released his latest interview with Ed Dowd, link here.
ZeroHedge subsequently picked up that feed, link here.
As is typical with ZeroHedge, the comments are a veritable gold-mine. In the like above, they don’t disappoint.
With XBI, we have our repeating pattern, link here.
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The Danger Point®, trade mark: No. 6,505,279
Pivot Lower
This week, biotech XBI, broke below support and then came back to test.
Today printed a new daily low (and closed lower), indicating the test may be complete.
Short trade: XBI-26-05, opened late in the session with a stop just above the day’s high (not advice not a recommendation).
Stay Tuned
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The Danger Point®, trade mark: No. 6,505,279
Some Gaps, Never Filled
The day after the SOXX, topped on February 25th, was, this update.
In the case of Nvidia, it never printed or closed above the high reached on that day.
Well, the SOXX never made it back either.
Then, March 3rd, we have what looks like a ‘breakaway’ gap.
There’ve been at least two attempts to close that gap.
One of those attempts, a Wyckoff ‘spring’ set-up, which may have failed (not advice, not a recommendation).
Semiconductors SOXX, Daily
Other markets have rolled over as well; the Dow, S&P, the Qs, Biotech and so on (not advice, not a recommendation).
This just out, shows the typical response to an oil price shock, link here.
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The Danger Point®, trade mark: No. 6,505,279
Downtrend Intact
Today’s action moved up, contacting the right side (supply side) trendline from yesterday’s update; then, pulled back.
For the short position, XBI-26-04. shown, the stop is just above today’s session high (not advice, not a recommendation).
Stay Tuned
Charts by StockCharts
The Danger Point®, trade mark: No. 6,505,279
