Biotech (Short), The Details

Relentless Positioning For The Downside

Like a terrier on a mailman’s leg, positioning short biotech via LABD, has been relentless (not advice, not a recommendation).

This update details the current positioning via 3X, Leveraged Inverse Fund, LABD.

This is not investment advice; this site has no obligation to provide the following information.

However, as stated in the About section, one of the purposes here, is to document trade actions and results.

With that in mind, the green arrows show the locations of LABD entries for the short-biotech (SBPBIO) trade identified as LABD-22-05.

Biotech SPBIO, 3X Leveraged Inverse Fund LABD, Daily

The magenta arrow at the far right of the chart, is the ‘break-even’ point. It’s about 1.75 – 2.0 points away from the current price.

Note: This is not ‘Dollar Cost Averaging’.

Few in the industry know that ‘dollar cost averaging’ is based on a scam conducted by the bucket shops in the early 1900s.

It’s comforting to know, that method (the scam), has made its way into at least one SEC certification requirement.

There, I feel much better 🙂

One of, if not the main reason for working this trade with the current method, is the real danger this market could ‘implode’ at any minute.

We’re just one (un)planned event away from being down 20% – 50% overnight.

Biotech SPBIO ($SPSIBI), Weekly Close

The weekly close shows SPBIO to be unique among all the major indices (miners excluded).

Not even the sister index IBB, has the weekly MA cross (black arrow) to the downside.

“You Are Here”

On the chart below, the complete positioning short SPBIO is shown as the magenta rectangle.

Also shown, are measured move targets.

Looking at the potential of this trade, the reason for the dogged persistence becomes clear.

Summary

As always, anything can happen … the trade could fall apart.

That’s true.

However, probabilities for continued market downside are increasing, not decreasing.

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.

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

GDX, Down 5-Months, & Counting

Way Back, To 2012

We have to go all the way back nearly ten-years, to find five consecutive down-months.

The bear market in the miners GDX, and GDXJ, is not any news to those accessing (or following) this site over the long-haul.

Nearly two years ago, this report pegged the bear market before it was even a blip in anyone else’s pineal gland. 🙂

That fact’s proven-out by the listing of no fewer than ten links to other analyst’s super-bullish posts on gold and gold miners.

It’s safe to say at that time, everybody else was pointed in one (bullish) direction.

So, what’s happened to GDX (and GDXJ) since that October 25th, 2020, report?

GDX, is down approximately – 38.2%, and GDXJ, has declined – 47.6%.

Not exactly a bull market.

Senior Miners, GDX, Monthly Bar

Looking at the chart, it’s obvious; the prior ‘five-months’, distance traveled, was much less than our current situation.

Add to that, there’s no real support until lower levels. The decline’s free to continue, unabated.

Summary

This site’s primary focus is strategy. The longer term, the better.

Including the October 25th, 2020, report on the gold miners, we’re coming up on several other significant two-year anniversaries:

Bitcoin to Replace Gold?

Dollar Reversal; Ready

Corn Goes Vertical

Let’s not forget, ‘The Speck’, as we call it, was identified as a hoax well over two years ago; documented with this post.

The intuitive assessment of only partial data (at best) was, and probably will remain, the most important post of all.

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.

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

‘Follow The Money’

Well, Almost … Now, It’s ‘Follow The Volume’

‘Follow the money’ was the clue back in the days of the Watergate scandal.

To unravel the secrets of the break-in, you had to follow the money trail.

Not much has changed since then; except this time around it’s important to look at the volume as well.

The 3X Inverse List

Compiled below, is a list of triple-leveraged inverse funds.

Only one (in bold) has recently posted record breaking volume day after day and week after week.

BNKD, DRV, EDZ, FAZ, LABD, SMDD, SOXS, SPXS, TMV, TZA, WEBS, YANG

From a Wyckoff analysis standpoint and from the volume itself, LABD is clamoring for attention.

The daily chart shows us volume is off the scale.

Biotech SPBIO, 3X Leveraged Inverse LABD, Daily

No other leveraged inverse fund’s chart (in the above list) has this look.

Somebody, Always Knows ‘Something

Wyckoff wrote back in the day, ‘insiders’ can’t leave well enough alone; their greed is too great to keep under control.

They take their information and act accordingly.

Our job is to look for those actions, decipher them, and then ourselves, act accordingly.

Who Could It Be Now?

So, what could it be that would cause ‘insiders’ (and professional speculators) to focus nearly exclusively on biotech and go short the sector.

Hmmm, just what could it be?

Well, the mainstream media doesn’t seem to have a clue either. It’s all a big ‘mystery’ to them (although cracks are appearing).

It’s The ‘What’ … Not The ‘Why’

Both Livermore and Wyckoff admonished us not to focus on the why of market movements. The ‘why’ will always come out later, after the fact.

They were concerned with ‘what’ is happening; is price moving up, down, or going sideways in accumulation.

Summary

There’s no mistake based on the chart of LABD above, something major, potentially long-term, is setting-up in the biotech (SPBIO) sector.

The chart itself tells us to focus specifically on this area (not advice not a recommendation).

With that, we’re about mid-way through today’s session.

Price action appears to be going through a test of yesterday’s reversal.

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.

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

When It Heads South …

… Bad News, Comes Out

Is that where we are with Biotech?

Houston Methodist Sued, $25-million

In what may be just the beginning of similar actions, is this the pivot point?

Part of a lawsuit’s process is ‘discovery’. That’s probably the last thing any ‘institution’ wants.

ZeroHedge picked up the news, linked here; the comment section is telling.

Potential for a significant reversal in SPBIO, has been on the radar for about three-weeks.

What’s price action saying at this juncture?

SPBIO, Daily

For starters, within the first hour of today’s session, we’ve already had an ‘outside-down’ print; last session’s highs and lows have been exceeded by today’s action.

Shifting gears for the next chart, we’re looking at 3X Leveraged Inverse Fund LABD.

LABD, Hourly

The Wyckoff spring set-up is clear. The testing discussed in this update, is per-the-book for Wyckoff action.

‘Tests’ can always fail.

That’s why it’s called ‘The Danger Point’. It’s the location where the risk of being wrong is least (not advice, not a recommendation).

The next chart, also LABD, highlights the record volume on two time-frames, daily and hourly.

This is a potential ‘changing of hands’ from weak to strong for the short-side on SPBIO.

It should be noted, last week’s volume for LABD, was also a record, making it three time-frames.

Summary

As this post was being created, LABD continues to rachet lower into what is now a deep test.

Currently trading at LABD 25.98 (mid-session), we’ll see if the test holds and LABD finishes higher for the day.

Meanwhile, the fundamental backdrop and pressure continues to build.

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.

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

Biotech’s Liquidation Sale

Won’t Know For Sure, Until It Hits Bottom

Watching and waiting for the downside reversal; looks like it’s here.

With about thirty-minutes left in the session, biotech SPBIO, is printing a reversal bar.

It’s not just the reversal that’s important but we could also be on the right edge of a massive trading channel.

Biotech SPBIO, Daily

It’s hard to see what’s really going on until we compress the channel and look at the possibility.

It doesn’t seem real.

However, we all have to realize we’re in uncharted (literally) territory.

If this sector begins a significant decline, that’s when to expect “bad news” coming out in the mainstream … likely to accelerate the downdraft.

Positioning

The short position in FXI (via YANG) was closed out (TDA-YANG-22-01) at 10.64, with a 15.4%, gain.

A new position was opened in LABD @ 25.80, as LABD was reversing off the session lows (not advice not a recommendation).

Trade identified as TDA-LABD-22-02.

The original LABD-22-05, was maintained, still active.

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

Biotech … Trend-line’s End

The Next Leg

Down markets have a nasty habit of revealing the bad news of truth.

Robert Prechter Jr., said it years ago (Wave Principle), the public needs to be conditioned to receive (and even demand) bad news.

Bear markets condition the public’s consciousness to fervently seek that which they previously ignored.

This reversal could be trend-line’s end for biotech.

If so, during the next leg down, we may be about to get the revelation.

The previous post was valid but a little early … by one day.

As we’ll see below, If the current action holds, it’s a potential major pivot to the downside.

Biotech SPBIO, Daily Chart

The un-marked chart does not look like much at this point. However, the mark-ups below reveal the potential.

We’ll start first with an obvious trend-line.

Next, is a similar trend to the left of the original and then, a potential trend at the right edge.

Where it gets interesting, is when the chart is compressed to show the symmetry of the trading channel.

It’s hard to dispute that it does not exist … there it is.

Positioning

Currently short this sector via LABD (not advice, not a recommendation), with LABD entries at 27.58, and 29.29 for a combined entry of 28.11.

Trade identified as LABD-22-05, with current stop at the session low LABD 26.57.

Summary

SPBIO, is edging lower with near term support areas on the hourly chart (not shown).

We’re still at the danger point; price action can reverse its nascent down move.

However, this time the fundamentals could provide the backdrop; a potential black swan (of ‘side effects’) and especially if the overall markets (S&P, Dow, NASDAQ) have also reversed.

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.

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

Biotech: Torn Between Two Forces

On The One Hand … Is Truth

Let’s start with Dr. Jane Ruby, first.

At this link she explains to the kindergarteners (who even at this late stage, STILL believe the lie), the truth about ‘The Speck’.

Go to time stamp 6:37 and watch; you can clearly see her exasperation as she has to go through it one more time.

We also have this going on behind the scenes as well.

On the other side is the continuous stream of fear propaganda. Just go to your local TAAS (sorry, FOX) news outlet to hear the latest lie du jour.

With that in mind, let’s go straight to the index for the day, biotech SPBIO.

The last analysis proved to be flat wrong.

There was a breakdown as anticipated but that move did not follow through. It was the precursor to an up-leg which is where we are now.

Biotech SPBIO, Weekly Close

It’s obvious.

Last week was a test of the resistance (blue line).

Thís week started with biotech sharply lower (early today) but then coming back to test … where we are now.

That test is starting to reverse late in the session (around 3:00 p.m. EST).

Let’s go straight to the inverse fund LABD

SPBIO 3X Leveraged Inverse LABD, Daily

A very tight wedge has formed.

Price action attempted to break out but has come back for a test. This is where risk is least (not advice, not a recommendation).

Positioning

The Basic Materials short (SMN-22-01), while profitable, was not going as planned. That position was exited at SMN 14.29 … you can see it as the low of this session on your trading platform.

SMN 14.29, is me 🙂

That capital has now been used to position short biotech, SPBIO at LABD 27.58. trade LABD-22-05 (not advice, not a recommendation).

The current stop is the low of the day @ 26.98.

Summary

Even as this post is being generated LABD is pulling away from the lows. With about one hour left in the session, it’s at 28.18.

The LABD entry was an initial position; there’s plenty of capital left to increase the line if trade conditions warrant.

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.

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

Weekly, Wrap-Up

The Usual Suspects

Bogart

No. 1

Airplanes Dropping Like Flies.

A very brief search of the most recent crashes or incidents are here, here, here, here, here, and here.

It’s all just a coincidence or maybe it’s because of this.

The repercussions of on-going events are just getting started.

This is a long-haul chess game.

No. 2

Americans Take Up The Gauntlet … Go To Vegas

What a pathetic bunch of cowards.

If you’re blowing whatever’s left of your money (or credit), it’s likely you have no real marketable (high pay) skills, no talent, lazy, obese; so, we’re off to Vegas.

Add to that, we’re just at the start of the depression.

Patera, from Appalachia’s Homestead (time stamp 4:24) addresses the problem a little differently but her final assessment is the same.

It’s true, there are some barriers to learning a new skill.

Dan from i-Allegedly points out the high cost to get a CDL, to be a trucker.

However, those who are awake, those with their nose in the KJV Bible, those leaving the corrupt church (in droves), knew that current events were coming; they took action way before it became obvious.

Remember this post?

It’s been nearly two years, to the day.

No. 3

Deflation Indicators

Not all prices are rising.

As the real estate sector gets vaporized, we have the natural fall-out, building materials dropping in price.

Uneducated Economist reports here, that’s exactly what’s happening.

Price reductions as we’re going into the summer building season, is a massive indicator of evaporating demand.

No. 4

Food First … Then Gold & Silver

Everything is going according to (their) plan.

Yet another indicator of the current strange weather (warfare) that’s going to strain the system.

Here’s the link to the very first post that specifically referenced Genesis 41; posted on December 31, 2020.

As with the ‘Mask on, Mask off (linked above), how has the post aged?

Is it still relevant?

What about this quote … seemed extreme at the time.

They paid for the corn first, with gold and silver.  Then they paid with their livestock.  Then they paid by selling themselves into life-long slavery. We can equate that last part (slavery) as getting the vax.

No. 5

Chess Board Strategy

It’s a bitter pill to realize we’re in the long game. ‘Normal’, is not coming back … ever.

That does not mean there’re no opportunities. There are.

Those opportunities (if we survive) are/will be potentially life changing for the good.

The Sunday futures market opened about two hours ago and we’re up around +0.40%, in the S&P.

Let’s see if that spills over to the Monday open; remembering that we’re short the real estate sector with the finger on the sell trigger (not advice, not a recommendation).

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.

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

Real Estate … Showdown !

Let The Lawsuits Begin

Let’s see …

We already have lawsuits for ‘The Speck’, injury and death.

Then we have the lawsuits because the stock price went down (always happens).

Now, we’ll have lawsuits for paying too much over asking price, because my real estate agent told me to.

Couple that with grocery store shelves going empty, power outages, fake wars (with real consequences), more corporate layoffs and voila!

The court case for any of the above, might be heard before 2030 … if you’re lucky, not homeless and we’re all still alive.

Was That, The Bounce ?

Yesterday, Wednesday was supposed to be the last chance for the bulls. The release of the CPI, being touted as a potential upward ‘catalyst’ for an already oversold market.

We even had helpful advice like this, saying ‘it’s so bearish, it’s bullish’.

Buried within that article was the caveat, extreme negative sentiment contrary indicators, only work in bull markets.

We’re not only in a bear market, it’s a full-blown collapse (so far). We’re on track for vaporization; all of which leads us to the market at hand: Real estate.

Real Estate, IYR, Daily Chart

The following chart contains a Fibonacci projection tool, showing levels from 23.6% to 100%.

Lower values such as 161.8%, are currently, off the screen.

It’s obvious, the market’s ‘respecting’ these levels as it hesitates (to confirm) before continuing lower.

However, the real story is on the hourly chart below.

Yesterday’s bounce is shown as well as a trendline.

The scary part, or good part depending on one’s perspective, that trendline’s declining at approximately 99%, annualized … effectively straight-down.

E.F. Hutton, Vice Chairman, Loeb

The late Chairman of E.F. Hutton said in his book ‘The Battle For Investment Survival’:

‘Real opportunities are rare. When you find one, it must be used to its fullest extent’.

This site adheres to tenets laid out by three masters: Livermore, Wyckoff and Loeb:

Strategy, Tactics, and Focus.

Shorting IYR via DRV (DRV-22-02) is our approach to what looks to be a significant opportunity (not advice, not a recommendation).

Summary

As long as IYR, price action continues to follow the trend lower, we’ll maintain short.

Anything can happen and the trend be violated … even at the next session about to start in 20-minutes.

However, at this juncture, probabilities for IYR, continue to point down.

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.

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

From Gold … To Crypto

Herding Towards The ‘Beast’

Are assets flowing out of gold, into Crypto?

Time stamp 9:27, at this link, Kyle Bass gives his perspective on why the precious metals (along with equities) have not launched higher.

‘People moved to other assets’

Insanity seems to be the go-forward behavior of what’s happening world-wide and in the markets.

Who knows how long the delusion(s) will last?

All it might take, is one major ‘Carrington Event‘, Coronal Mass Ejection to rip the mask off Crypto; just as this link has done with the truth of ‘The Speck’ protection.

From a predictive programming standpoint, it’s interesting the typical symbol for crypto, the most popular ‘Bitcoin’, is colored gold.

Which brings us to the actual chart of gold (GLD).

Gold (GLD) Weekly

From a Wyckoff, tape-reading approach, we have to trust what the chart is telling us.

That is, gold has reversed.

Earlier posts on gold and the miners have effectively stated, there’s no more ‘fear’ to be had save an outright nuclear detonation.

If that happens, it’s doubtful that anyone will be running to the gold market for protection.

Does everyone have Potassium Iodide tablets? If there’s an ‘event’, they’ll be worth their weight in gold (literally).

The Noose Tightens

Constriction, elimination of the food supply (along with everything else) continues and is accelerating.

Fortunately, or unfortunately depending on perspective, we’re watching a potential major opportunity unfold.

That is, the opportunity to acquire hard precious assets when (nearly) everyone else liquidates.

Gold to Crypto

Is that even possible?

Would gold (and miners) be sold off to buy Crypto?

According to Kyle Bass in the link above, it’s already happening and has been for a while.

From a ‘beast system’ standpoint, it makes perfect sense, going from the pure (i.e., gold) to man-made, corrupt.

Junior Miners, GDXJ

The last post showed GDXJ, at the danger point.

This (juniors) sector seems to be the most sensitive to metals fluctuations. So, we can use it as a leveraged proxy for the overall market.

One has to wonder what kind of ruse will be created to have the masses dump their precious metals ‘stack’ and panic into crypto.

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.

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