XBI trade ideas
OPENING: XBI MAY 17TH 80/85/98/103 IRON CONDOR... for a 1.67/contract credit.
Metrics:
Max Profit: 1.67 ($167)
Max Loss/Buying Power Effect: 3.33 ($333)
Break Evens: 83.33/99.67
Delta: -2.03
Theta: 2.02
Notes: Some nondirectional premium selling here in an exchange-traded fund with high implied (24.8%) relative to the broad market; going 25 delta with the shorts, five-wide with the longs and collecting one-third the width of the wings. Will look to take profit at 50% max.
XBI, LABU: I am bullish on LABU and XBI confirms it.Just for knowledge purposes. Check my LABU post.
Rising wedge and double top @ 93, MACD & RSI DivergenceSlow down in China and Europe, Recession in Germany, Trade tension between US/China, Fed capitulation, Bear market rally exceeding 40% from lows, etc., etc., etc... all seem to point towards another leg down, possibly beyond previous lows. Over excitement by the bulls after yesterday's rally adds to my conviction that we may be heading lower, and possibly much lower from here.
XBIBear market rally of 44% off lows, MACD and RSI divergence, double top at 93 and rising wedge all seem to point towards a reversal back down to the lows. This week's ultra dovish Fed capitulation, Brexit/EU uncertainty, drug price control debate, VIX under 14, extended China/US trade talks, ultra-low job creation, slowing economic growth globally and missed earnings, may also be supportive of a downward trend.
XBI = prepare for the next move DOWNSomebody asked me why XBI is going up so much.
When you have such kind of questions you need to see the big picture and control your emotions if you have an open position.
Markets go up, sideways or down because they just reflect crowd psychology.
This is why it is important, during weekends for example, to analyze the big picture.
What I see in XBI is that we are just having a reaction and nothing more.
The channel was broken, XBI went down in a nice 5 waves move (1) and now we see the reaction (2).
As soon as it ends, a new strong move down will start.
It will be a nice short trade with target $50 to $45.
Pair Trading Idea XBI/IBBApplying some of the most popular indicators on the pair XBI/IBB shows an interesting pattern. While XBI has been clearly outperforming IBB since several weeks, a trend reversal seems to occur. IBB might catch up in the coming days and weeks.
under 86 shortoverpriced drugs, many of which are mostly ineffective. short this greedy hog $LABU $LABD $IBB
XBI Sold PutExpiry 18/Apr
Sold 82 P
$133 credit
POP 84%
Suits my macro view and after the gap up, hope to ride some quick momentum and take 50% profits.
XBIGood short soon. I think we are in the b wave of larger C, which could take us down to around 40 or so.
xbi inverse H&S short term ->#bullish run into 2020 The beginning of a new age w novelty therapies in Biotech sector (i.e. gene editing, gene therapy, ERT, Pi3K inhibitors, FAK inhibitors, heart disease, diabetes, mental health, medical equipment, cannabis, etc..)
The Bio technology sector will see a bunch of M&A in coming years as big pharma merge to take market share in different parts of the industry, novel therapies will continue to grow this sector and may even likely start seeing a roll over from people who invested in the tech sector in the begining of its dawn.
But especially with CBD and other unknown health and wellness that comes from the cannabis M&A, in my opinion, has just begun!
This is just my opinion, 2019 will bring new factors to the industry in ways to heal people/ give them quality of life that wasnt available (legally) before. BIO has always been a risky sector, as many companies are in FDA clinical trials- Make sure you know what you are investing in and have risk appetite for possible sharp swings.
GOOD LUCK IN 2019!
Disclosure: I am not being paid to publish this chart, nor should is this investment advise. Everyone, PLEASE do your own research (DD) before buying any tickers mentioned, as markets fluctuate and no one ever truly knows "exactly" what may happen next.
XBISolid bounce from the lows, running into heavy price and trend resistance after a 50% fib retrace, looks to have printed and hanging man candle for the day as well. LABD is my method of shorting this with stops right over the price R on XBI.
to low 50'slong term chart uptrend. massive move for biotech in this bull cycle. inflated drug prices... swan $IBB $LABD
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.
downtrend strength: big picture could get to low 60's cyclically. Holding June 2019 60P . $LABD $IBB $SPY
