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XBI

Biotech symmetry. Let the market settle down, and then go long.The biotech sector is really interesting when you dive down into the symmetry of the last few cycles. Early 2000s-2008 and 2016-2018 are mini rallies within the bigger wedge. If this pattern is to continues, you can look for entry around the end of 2020 when we bump up against the larger support line (around $3600), and expect to hit the resistance of the larger wedge ($10,000). There is also a lot of confluence around the $7500 mark so we could fall back to that after hitting 10k. This would repeat this pattern for the third time. Near term, I have some shorts in this sector because I think many of this small biotech companies have been operating at negative cash flow with a ton of free credit. I don't expect massive gains on these shorts, but I will certainly be going long towards the end of 2020.
NYSE:BTKLong
by warrenbudget
Bullish XBINote: This is not an investment advice but my opinion alone. Please feel free to comment The XBI has been on a downtrend since September and one of the first sector to begin the pull back after all time highs. I am still bullish this segment looking at the charts and the current price action on the 5 year 200 EMA. It looks as though we are in wave 2 based on what seems like an ABC reversal in 2016. If we break the EMA then we could be headed lower but I see this sector as bullish in this volatile environment.
AMEX:XBILong
by UnknownUnicorn3272672
winners and losers X-rayWe can see clearly in this x-ray of the major index of USA there is a clear evolution in the last 3 months, you can clearly identify two sides, One that of the winners, made up of sectors such as;; Kie ( insurers ) / ITA ( defense, aerospace ) / splrct ( tech s&p 500 ) , . and on the other , you can see the side of the losers, :: made up of sectors of :: kbe ( bank ) / xbi ( biotech ) / xrt ( retail ) / xsd ( semiconductors ) // clearly there is a separation between sectors. ¡¡ whose benefits are positive, // and other sectors whose benefits are Not positive. take note about it.
SP:S5INFT
by ManuelRodriguez
THE WEEK AHEAD: JPM, C, WFC, SMH, AND XBILater in the week, we kick off earnings season with a trio of financials: JPM, C, and WFC,* all of which announce on Friday before market open. Generally speaking, I haven't played a lot of financials in the past, since their background implied volatility never seems to bump up significantly enough. Here, however, with JPM's implied at 32, C's at 33, and WFC's at 33 -- all toward the upper end of their 52-week ranges, I figured I'd take a look to see whether "this time is different." It looks like it is ... . The April 20th 23 delta 104/114 short strangle in JPM is paying 1.47 at the mid with break evens at the one standard deviation line, and the corresponding defined risk setup (an iron condor) with strikes at 101/104/114/117 is nearly paying one-third the width of the wings -- a .96/contract credit, with break evens between the expected and a one standard deviation move. The C April 20th 65/72.5 20 delta short strangle is paying 1.00 even with break evens at the one standard deviation line, implying that a defined risk setup isn't going to pay at least one-third the width of the wings. Moreover, the longs clear of the 20's go 2 1/2 wide ... . In WFC, the April 20th 49.5/55 22-delta short strangle pays .87/contract with expected move break evens ... . Out of these three, I'd probably go with the JPM play because the defined risk setup is paying nearly one-third, and the strikes wide of the 20-delta strikes don't go all "wanky." Having strikes in one-wide increments basically everywhere generally leads to fewer rolling headaches. That being said, it's a long way between here and Thursday close, which is when you'd want to look at these underlyings again, adjust your setups accordingly, and see whether they're still worth your while. On the exchange-traded fund front, the top five implied volatility wise are: OIH (37), SMH (36), XBI (36), XOP (35), and EWZ (32). I'm already in XOP and EWZ plays, so the only thing that makes personal sense for me out of that group are potential plays in SMH or XBI, although I'm sure there's still juice to be had in just short strangling XOP (the May 25th 31.5/38's paying 1.00). The SMH May 18th 90/108 short strangle (20 delta) pays 2.55 with expected move break evens; its defined risk counterpart, the 87/90/108/111 pays .93, slightly short of the one-third I normally look for, but probably good enough for a less than 40 day until opex setup. The XBI 75/91 pays 1.98 with expected move break evens; the 72/75/91/94 pays .85 ... . * -- Given that this trio is closely correlated, it may also be worth taking a look at XLF, although with a background implied of 28, that isn't looking all that juicy at the moment ... .
S
by NaughtyPines
7