IBB
SPY: Update - Bottom was inHow are people still bearish on SPY? I'm glad I didn't close my equity longs, although I did have a stop out at break even on my SPX position overnight. The way SPX bottomed against the BIG$ support level obtained from VIX showed us there was going to be a rally once again.
The reaction to Trump's increasing odds, and finally victory in the elections was absolutely extreme, 'despair' like my mentor, Tim West described it in his yearly forecast chart. This sentiment extreme sets the stage for a rally, and we already had such rally. Now, if this keeps going there's a chance that it confirms my 2-month timeframe uptrend signal, with a target at 249.
The signal was confirmed by the end of October, and the retest of support simply gave a low risk buy opportunity which we seized.
We'll be examining this closely in the near future. Hopefully Trump manages to help the economy pick up steam with his plans, and doesn't implement his ridiculous ideas like the 'Mexican wall' to name a few.
Positives are many, unknowns too, but I believe the market is full of opportunity right now, with blood on the streets.
Good luck, to all.
Ivan Labrie.
IBB BiotecgnologyMixed signals
Bulls need to break above green line
Bears need to break below red lines
Biotechnology ETF $IBB Short Level RevealedThe biotechnology ETF $IBB has limited upside near-term. The max upside is $306.75. This is the level that Pro Traders will be shorting. Notice below the range the $IBB has been trading in. When it hits $306.75, it will be the high end of the range. The downside could be huge on this trade, with the lower target of the range at $250.00.
I post all of my trades on Verified Investing and you can follow every trade i take in real time, verified, here: verifiedinvesting.com
IBB: Go long, hedge or notSame theme as SPY, we have an excellent long opportunity here. I like the VIX and pseudo-VIX activity today (USDMXN if you might ask), so I think we have a bottom in place here. Stop is a new low, risk 0.5% going long at market open, add to reach 1% risk on dips in the following 3 days. You may or not hedge with either a half size LABD position, or IBB puts at $255, Dec 16 expiration.
Good luck!
Ivan Labrie.
Biotechs bottoming?I like the positive divergence on money flow here. Buying some biotechs this week
IBB approaching support.Technically Speaking
IBB is approaching support at 240.
A break under 240, could see a move toward 200.
What to do?
I will watch and see what happens at the 240 level. I am looking to buy if it holds.
If it breaks, I am looking to buy at the 200 level.
Ultimately, I am looking for a move back above 300.
ABMD: Reenter longs at maket, potential for 24%+ upsideABMD has expanded the monthly range down and is at a very strong support zone here, hitting a high volume level, close to earnings support and the yearly SMA.
We can enter longs risking $14 downside, and aiming for $30+ upside.
Each time we expanded the monthly range down, we had higher prices in the next 3 months, on close, from the monthly close (which now is only 2 sessions away), 9 out of 10 times since the 2009 low.
Good luck,
Ivan Labrie.
GILD: 2nd try at the long side hereGILD looks poised for a rally back to the earnings level above. Valuation is very good here, with 14% earnings yield, among other details of the company's financials.
You can go long, the risk is risk a 3.86 per share, but profit can reach 2.61 times the risk, or more if it's the start of a trend reversal in the stock.
IBB has flashed a bottom, after a 'Time at mode' decline in the daily chart ran out of time, so I think it's safe to assume that GILD will rally from here onwards.
Good luck!
Ivan Labrie.
LABUI like LABU here. The stock markets are starting a new cycle which will move LABU higher. I have a target of $60, but I bet it goes much higher.
Breaking down Retest in 60's - Current support at 50 day SMAlooks ready to retest 60's where there is a large gap
IBB: Could be range bound hereI'd reccomend looking to exit from biotech longs before news this week. The resistance level between 290.75 and 293.47 is quite significant, and the forecasted target from my previous chart is almost hit. Anything above that target is a really decent exit for now.
The market being sideways, is what would frustrate the most people, and thus, it's the most likely scenario here, in the short term.
I'll be focusing on riding the short term legs via SPX, while holding my longer term fundamentally biased trades, heding my exposure to longs by selling calls when viable, and/or buying puts, whilst also being able to quickly switch from long to short SPX cfds, and generating uncorrelated returns from FX and commodity trades.
Good luck!
Ivan Labrie.
IBB: Time at mode downtrend failure is a wake up callThe implications are that since IBB failed to hold below 282.68 and drop with the market, we might see a strong risk on move accross the board.
We can also examine BID to find it's holding earnings support.
These two stocks can tell you a lot about the direction of the broad market, as illustrated by Tim West in his publications.
I am net long again, but with an open mind. Until FOMC, I doubt the market falls again, and we might even make a new all time high.
Cheers,
Ivan Labrie.
