CVS - this has been one of the best of the year. Making all time highs over and over again. Is it tired? Not until the last accelerating line is broken.
Well, Two different time frames, I am not so happy that Biotech / Healthcare does not digest enough before every rally. The trend currently has not shifted. Even in Monthly, the Acceleration is still valid. IMO, no reasons to look for a failure trade yet. We are going through the speculative phase on Biotech, that could pretty much result in a V top. Drilling down and watching for important levels to be taken out is important.
That's How I Validate Pullbacks. This strategy works 80% (ball park) from premium selling perspective. 50% on Directional move, the 50 % usually comes with less Risk / Reward ratio (less risk). Where Buying OTM (delta 30/40) is profitable. There is few more things to check before picking a strategy, most importantly the greeks.