LABULooking at LABU, initial breakout is consolidating now, probably a 1/2 way pullback to be expected. Then a push higher to the 45-46 area. RIS overbought, so wait for a pullback soon.
IBB
IBB likely to repeat a rally IBB went through a small rally today and we do notice there is a similar pattern happened before in the green box. It's likely to revisit 282.5-286. Let's watch to see how'd IBB go tomorrow!!
LABDLooking at the Pharma sector. The inverse fund LABD looks to be coming off a double bottom. THe TSI looks to be crossing and moving higher. The RSI is moving from oversold higher. IF the general markets are setting up for a sell off (I think they are) then this could be a real good play.
Gilead- ShortCurrent Support: 69-70
Near-Term support: 63
I like Gilead for fundo reasons (massive FCF) but the market is correctly worried about declining hep c revenues and the lack of a transformative acquisition. The trend is clearly down with regards to price, MACD, and RSI. RSI trend-line needs to reverse in order for price to appreciate in my view.
LABU, IBBI had an alarm set to buy at the 78.6% Fibo ($29.78). It came close but never got there. LABU is reversing hard now, this looks like a strong breakout. I will take a position at the open.
Survey - What would you do in this scenario This is a chart that I sent to my members today.
It presents two potential trades on IBB:
1. Bullish (short term) setup - 270$ is the key zone as it presents a weekly support zone.
2. Bearish continuation (based on longer term analysis) - Continuation of the the waterfall that started on May 2015.
Waiting to here your thoughts.
Biotech (IBB) - trade of the yearIBB is at multi-year cross roads. Ideal for straddles / strangles. A dropping RSI points to a weekly downtrend.
Both trade ideas are plotted. From a fundamental perspective, I believe @realdonaldtrump is right, biotech is getting away with murder. I get one of my meds from overseas because it's 1/182 the cost. Yes, you read it right. It costs me $1 there and $182 here for 10 pills.
North America has one of the most affordable:
1. housing, 2. food, 3. cars, 4. Gas, 5. tech, 6. Financial Markets anywhere in the world. But what is charged for healthcare is OUTRAGEOUS. An open heart surgery done in India, China, Malaysia, Singapore, Russia costs $50,000 including business class airfare and 5 star accommodations ($20,000 is surgery cost) . In USA it is $250,000.
This is a topic that Dems and Republicans are aligned on, it's very important for the most powerful country in the world to have affordable health care and thereby provide capability for it's citizens to live a happy meaningful life.
Reducing healthcare costs should also increase profits for S&P by about 10% within the next 3 years as it's one of the major expense for any company.
Health Care down big after Trump press conferenceFound support @ 55-EMA, but negative sentiment has us Bearish
IBB targetsStill rangebound, and pending any big negative news on its components, IBB should be going up for days(?).
JUNO rounding.JPM conference presentation this week. If it's good, or if $KITE is good, this will move.
IBB still on target.Still on point (with just a few cents away from breakdown target) and really just added a diagonal downtrending black line on the daily TF. It remains to be seen how the action goes for the remainder of the year though.
IBB: Previous year's darling index. IBB has been one of those indexes that has been very easy to trade with, but "blink and you'll miss it" kinda deal. It's been a rough ride for the year, and if the chart is any indication, it's about to get tougher for this index (and its components) soon. No where but down.
IBB - Gap Filled, can move higher nowI'm playing odd that this will move a little higher. Bought Dec23 270 call / sold two Dec23 280 calls for $1.90
ABMD: Update - Good chance to reenterABMD has responded well to my forecast and trade idea, as you can see in related ideas. We rallied and retested support here, so I expect to see a rally coming out of the dip.
Good luck,
Ivan Labrie.
Multiple +ive patterns1 trend retest
2 trend-based fibo. bounce zone
3 possible three bottoms (Super Pattern)
