Yesterday we had a capitulation type of volume in XBI, so I think we are very close to the bottom, or maybe we had it yesterday. I still think that the 06.29-06.30 gap is a runaway gap - which will never be filled- and yesterday we almost exactly tested back the top of the gap. And today we couldn't fall anymore we are just bouncing from the gap.
So I think entering here is a low risk trade if someone set a stop below yesterday's low. If we break below yesterday's low and enter into the gap we are going to fill that and we are getting very close to the 49$ level. If we break below 49$ I'm quite sure that we are making lower low in XBI so the line in the sand is the yesterday low for me. If we take that out I'M not interested in XBI for a while.
Indicators MACD is turning up and might want to cross over RSI left overbought - in the past it was a sign of the next leg up.
We are charting in XBI so you have to trade based on this when buying LABU. The 3x ETF chart (LABU) is not good for charting.
LONG XBI 54.70 $ STOP 52.80 $
LONG LABU 26.90$ STOP when XBI breaks below 52.80$
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If we break above yesterday's high - 55.83 $- that would be a swing low. It would mean we have the follow through in the following days.
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LABU might shine tomorrow after market open. SPX looks great
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Closing 50% of the LABU position now.
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Closing the other 50% of LABU today.
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Price 43.48$
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Money is flowing out of SPX as it's breaking out.
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For the same run (near 45%) we had to be in LABU from the 1st of July till the end of September last time. This time it was 2 weeks.
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archie123
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This is crazy ! Anyone care to speculate on what tomorrow will bring ?
Apri -- you had it nailed spot on with the buy XBI at 54.7 (LABU 26.9). Congratulations !
Those folks that bought LABU at $25 are very happy. Bigger money today in XBI/LABU than Gold.
Who would have thought...
bertcoin
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Thanks Arpi. I sold 1/2 a couple days ago, worried about the S&P topping after the Trump run. You confirmed my worries. I'm out too.
playthetrend
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A great call for LABU, thank you for this call.
Staxs
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It would seem for now XBI and LABU can keep running so long as the SPX500 holds firm. XBI tanked last year (July) after the Clinton tweet targeting BioTech profits.
Earning season has been OK so far so would like to see XBI take out the 2016 high before year end and it could come quickly. So another 30-40% rise in LABU perhaps.
Hks6996
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Love LABU, and I thought gold ETFs were going to be the big winners today... omg...
bertcoin
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GO BABY GO! LABU LOVES TRUMP!
toothless
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@bertcoin, up 35% at the moment. Insane day for biotech.
bhowe
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Thanks for the info. I was actually looking at this as a possible bottom. It looks like a Bullish Bat Harmonic pattern completing at the 88.6% fibo number. A turn here should get us to $40.10 or the 50% fibo.
Apri -- you had it nailed spot on with the buy XBI at 54.7 (LABU 26.9). Congratulations !
Those folks that bought LABU at $25 are very happy. Bigger money today in XBI/LABU than Gold.
Who would have thought...