It isn't the easiest thing in the world to sell short a market that is rising as strongly as IBB
has here lately. However, when a trade is "hard to take" and it is following a set of rules, then it should be taken. The rules involve my personal RgMov indicator, which has failed to confirm the new high in IBB
. Granted, that may make it seem like a terrible indicator if it can't make a new high on a move up like this, but that is saying that the rally is not as structurally sound as other times.
The Risk is 1 average range (use the 11-day ATR calculation = looks like it is at least 7 pts).
Downside potential is whatever the price is when CCI
reaches -100 and -150.
Tim 3:11PM EST, Monday, November 3, 2014 - so 3/11 on 11/3