IBB trade ideas
IBB Correction IncomingPsychology of a Market Cycle Cheat Sheet: goo.gl
IBB's chart is identical to the chart on the market psychology cheat sheet linked above.
IBB 5-wave cycle is over + Truncated 5th
Algorithms exit the market after extended 3rd waves, leaving the 5th with no volume nor liquidity, just as it's done for IBB .
Current Market Condition: Complacent. Just "cooling off for the next rally".
50%-60% Downside.
IBB Short?Looking at following Ken Tester short advice on the IBB, am I crazy? I see a historic growth pattern in Q1 but it does appear to have a dip upcoming in this trend. With the IBB having a near total North American fund it is exposed to political developments such as the shutdown, a new bill to lower prescription drug costs put forth by democrats in the house and with pharmaceuticals companies recent price increases, it seems like a legal battle brewing. I am anticipating a drop to retest it's Christmas woes below 89. Any thoughts? IBB
sell overbought biotechnology sector IBBIBB is up 22% in 20 days. I believe this is unsustainable in the near term (next 2-4 weeks) and believe the stock should retrace. Right now we are testing last highs and should be a good entry place for a quick short term trade. To give myself a little buffer, I am selling the stock for a break even at $112.91 by selling the 112 call/buying 115 call for 91$ per contract. If the stock stays below 112$, my option will expire profitable for 91$ within the next 30 days.
Bullish on IBB breakoutThe 119.57 level may offer some resistance but we believe a breakout is imminent. However, we are going to pony up a little bit of premium to buy us a couple of months for the move to materialize.
The September 21 $119 strike is being offered at $3.40. This will require a nearly 3% gain at expiration to breakeven. Should the 119.57 level be bested, 126 could easily be achieved. 122.50 is needed to breakeven, 126 doubles our $3.20 investment.
IBB - Short for now but bullish longer termYet again (markets really are at a critical juncture imo) I can see two possible counts for this index/etf. The red count would suggest a much deeper and longer correction before continuing upwards while the blue count suggests that the rally from June, 2016 was in fact a wave 1 up. Something the blue count does have going for it is that the larger wave 2 correction was already a 4 year correction from 2004 to 2008 so perhaps this wave 4 has been much shorter. I'm leaning with the more bullish blue count. (As it is a longer term chart I have used the fib channel tool for my fib retracements as it apparently a workaround for a lack of proper logarithmic scaling in TradingView.)
IBB Trend analysis with minor volume price analysisWatch closely tomorrow. Bull trap vs bounce off trend line with continuation of current trend. Personally I think the trend continues.
I'm a beginner at volume price analysis. Analyzing the daily bars I feel this opens higher tomorrow. Sell off with wide price swing however was on low volume.
Biotech Breakout - Get Long Because It's Strong! Biotechnology stocks have done nothing over the last 3 years however we now see a breakout and this could present an opportunity to add to a long term momentum portfolio. Please stay tuned, as there could be be many opportunities in the broader healthcare sector.
