AMEX:LABU   DIREXION DAILY S&P BIOTECH BULL 3X SHARES
5401 105 64
I have seen a few people buying LABU             2 days ago at the exact bottom. Guys you might have bought the exact bottom of Biotech! So please don't ruin that position because I'm pretty sure we are breaking above the 100 EMA in a few days and most probably more rally is coming.

2 days ago we broke below the trendline but the selloff couldn't last for too long. We not just printed a reversal breaking back above the trend line but almost printed an island reversal. Let's say we have 1/2 island reversal. The gap below today's bottom might never get filled.

RSI left oversold just like at the previous rallies. MACD turning up -crossing over soon. This rally could be even more powerful than last one. A 30-35$ rally is not out of the table...
Comment: Do not try to take profit. If you take profit you will be forced to buy back at much higher prices or you will miss all of the rest of the rally.
This one has printed an intermediate cycle low 3 days ago by breaking the trendline. So it will run for 6-8 weeks. This is going to be a horrible rally.
Use the dips to add the position. This trade will be the a big winner.
Comment: If we close here at 30.62 we rallied 40% this week.
Unbelievable.
Comment: The 2 adding points:
29.3 and 27.7. If you add at 29.3 have some dry powder to add around 27.7-28.
I don't think the gap will be ever filled.
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Comment: LABU was a buy at 29.3 today.
Comment: Today LABU is a buy again.
Try to buy the dips!
Comment: Don't freak out because of yesterday's red candle!
Every red candle is a reason to add for 2 weeks from now
One could use the 10 EMA on the 4hrs chart to add the position
Watch how 10 EMA is supporting the trend...
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Comment: I'm 100% sure we will tag 40$ in 2 weeks.
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Comment: LABU premarket 34.6
Almost all of yesterday's decline erased...
Comment: I don't have premarket data yet but because of the JUNO news I'm quite sure we will open with a gap.
(UP gap) I think the whole market will have a small correction today so I'm going to sell half of my LABU position into the open. I will buy back at the close , or tomorrow at the open.
Will post it in the stock trade.
It's just a small game you don't have to follow one could loose the position or have to enter at higher price...
Comment: A few of you asked would Ibuy the dips in LABU or not.
I said yes, but now at the open I will not buy. I want to wait what's happening today.
S&P is in a rally mode but we could stop for 1-2 days. That would affect LABU also.
It could drop a bit more. I would like to buy now lower.
So if you are in a long position just hold.
If you are at the sidelines just a wait a bit for better price. I will post in the stock trade when I add .
Comment: We are opening with a gap.
I tried to calculate the worst case if we fall. All who is overleveraged could close some position now at the open. Just in case not to be stopped out at the blue dotted line
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Comment: Still valid. I say tomorrow the latest when we are reversing.
Comment: We just closed the GAP and closing above the 100 EMA by the close.
It might be a buy today. I'm fully positioned so not buying, just a short thought....
Comment:
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Thanks! I just added to my position about 30 minutes ago... so I hope you are right :-).
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Lucky Bastards :)
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I expect 40 dollar LABU by the end of this daily cycle. New IC just began.
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perdp PRO traderzaius
how long you think this DC will be?
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The cycle count should be shortened and left translated. We might go parabolic within a week or 2.
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traderzaius traderzaius
due to the fed shortening the ICL
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toothless traderzaius
Do you feel that the S&P hitting it's ceiling will cap the upward trend for LABU?
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traderzaius toothless
Biotech has been beaten down to the point where I can see it leading the market to higher highs. I has been in a consolidation for quite some time and is ready to break out like miners in January.
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toothless traderzaius
Ah, interesting. Didn't think of biotech as leading the market. Thank you for the response.
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toothless traderzaius
I wonder if Biden's "Moonshot" initiative that he launched today will help the biotech sector. I believe so. http://www.reuters.com/article/us-cancer-moonshot-fda-idUSKCN0ZF0XZ
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traderzaius toothless
I don't trust in news events to drive the stock market over the long term. Biotech's general direction is following the SPX but it magnifies it.
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toothless traderzaius
Please reference my question below. Thanks!
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Hi Arpi and all. Great looking out with LABU. Been following chartwatchers on this one, waiting for the bottom. I looked up info on why LABU crashed so hard in early 2016. No one had a really definitive answer, just a perfect storm of negative news.

My question: so if LABU is following the S&P, and the S&P is getting close to hitting it's high again around 2100, in theory, won't that pretty much cap off the upward trend for LABU? Or are there other factors besides just the S&P that will move LABU.
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We are thinking similar
Biotechs good risk/reward IBB
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traderzaius Market_Psychology
No such thing as a triple top... it can only mean breakout!!!
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I wonder if Biden's "Moonshot" initiative that he launched today will help the biotech sector. I believe so. http://www.reuters.com/article/us-cancer-moonshot-fda-idUSKCN0ZF0XZ
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What is the ticker for the index that LABU is reflecting?
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rere04 perdp
S&P 500, but at then end of the day it looked like is stalled even tho S&P was surging. Weird. Must have ben over bought the day before?
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LABU is a derivative of XBI, who ultimately follows IBB. FYI: It doesn't always move in lockstep with the S&P 500, that's a misconception!
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30! :)
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Arpi, my broker doens't allow me to trade labu. Is there any other way to profit from this rally?
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Nightstar mabaert
XBI or SBIO is another good one! Get on the train :)
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What do you mean by "This is going to be a horrible rally"
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It's just the beginning too.
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Excellent... again ;) Thank U for updates dear RobinHood... excellent risk reward...
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I'm still kicking myself for not adding to my long at $22-$24
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hi Arpi. Good time to add on this position?
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What is the premarket price? I haven't checked it yet
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Notyour chartwatchers
29.93
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The 2 adding points:
29.3 and 27.7. If you add at 29.3 have some dry powder to add around 27.7-28.
I don't think the gap will be ever filled.
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Notyour chartwatchers
sounds good. tnx
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Hi Arpi, Thank you very much for your hard work. What do you think about waiting to add to LABU positions break beyond $31?
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cha-ching $$$$$ :D
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The moon is next..... get in while you can, this one is gonna be a monster.... same pattern as miners before the breakout
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Great work Apri! Entered @ 29.18 today!

Thank you!
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What is the target for this?
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I will close when the SPX-NAsdaq-Dow is topping in August-September.
From 60 to 100$ can be anything.
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Thoughts since JUNO
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Tenbears1979 NightFlyz
LABU down 5% after hours. I might look to pick up a long out of this mini-panic. Thoughts welcome.
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NightFlyz Tenbears1979
I added some to my position, although I think it's going to fall more during the early hours because of the panic.
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I am also long LABU, how do you think the JUNO thing? LABU was down 5% after hour, will this event reverse the uptrend?
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Interesting how LABU as well as XBI have produced a 'hanging man' candlestick just before JUNO's breaking news. From a technical's point of view, a 'hanging man' has bearish implications and it usually signals a reversal of some sort. I hope it gets invalidated as I like my LABU trade, but then again.. You should never trade with 'hope' :/
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Hello Arbi and LABU team, I am in at $25, I read in Your comments you expect LABU to go 60-100. Which I really do not see for now by any means. Look at the chart below.
Three consecutive inverted flags in the past year. It will be very hard to believe that a break up above 42-45 is possible, At least not in this ride. Am I missing something in my analysis ????.
I am still thinking LABU will get hit one more hard time down before escalating up.

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yeah, it looks like it's a bear flag which has a head and shoulders downward reversal in it.
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Head and shoulders only works at the end of a bull trend.
I don't see here a prior bull trend.
I see a decline and your head and shoulders here could be a multiple bottom or range.
But not head and shoulders .
"Just long this stuff and go !"
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stefancfuchs chartwatchers
For some laughs... https://www.youtube.com/watch?v=0akBdQa55b4 caution, strong language
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Annette gLloW
I agree with both I mean...I am convinced it will be a rally but after the right shoulder ;) the pattern could be uncomplit, it means after the decrease of the right shoulder (if you consider a possible new positive trend), a new leg up would form the King's crown pattern, going much further than the head level ;) By the time everybody is happy, if enter and exit would be done in right moment ;) Meanwhile time will show us the way, happy trade ;)
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after hitting 35, LABU jumps below 34, are we still in a bullish trend?
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Yeah. still
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mumuyang2 chartwatchers
thanks man! learnt a lot from your posts (gold, oil and SPX), thanks very much for sharing your ideas with us. Looks like we are back to the uptrend again today?
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Looks like we could tag/break the 100 EMA tomorrow? I added to my position today, do you think this is still a good play?
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Where did you add? End of the day?
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dmz chartwatchers
$34.39 - Just before the nice washout :(. But will stay on it, is looking good.
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dmz dmz
Stopped out at break even. Will wait for better setup.
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Chartwatcher, a question. For calculating the target... I wonder if it is more accurate to use the non-leveraged version to evade risks ok miscalculation due to decay. So shouldn't we use the XBI chart instead of the LABU chart? To reach the previous high on the XBI chart XBI should gain another 2.75%. LABU is 3 times leveraged so LABU will go up another 8.25% for the XBI top to be reached... which is 36.3 instead of 40. What do you think?
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True. For studies XBI is much better than LABU as it's a 3x ETF.
But I don't want to set target prices in LABU. We will see in real tie when to close it.
If you don't have time to watch it every hour just check the LABU post I will post when I get out.
But the exit is minimum 2 weeks from now. ANd I will reenter again when SPX prints the DCL...
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chartwatchers PRO chartwatchers
tie=time
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the_roggy chartwatchers
OK, thanks!
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Dear Apri Thanks again for information and confirmations of events that seem as trend change with all factors in in tech and market. Great Rally ! The confidence to stick the ride is to trust the the pattern completion on fundamentals that I fail in so often due to the lack of knowledge. I am getting better but looking at other outlooks that conflict sometimes I get nervous trying to find fundamentals to justify it. Thanks for your effort in Your clarifications!
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Looking at the hourly, seems it could be that we topped out today? Also ending the day with a shooting star candle.
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Is that reversal I am seeing in 4 hourly (confirmed 5 hourly) and daily candles, 5 H- Engulfing Bearish, Daily- Doji Star Bearish. The start of head and shoulders (top second shoulder) on daily? 30 minutes could be doing head and shoulders rounding over? I added yesterday 35.33, faith of a 40 ..oops
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Added some at $32. Risky but lets hope that the uptrend wasn't damaged too much.
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Add some EOD, we'll see what happens tomorrow.
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I hope that mega bearish stick gets invalidated tomorrow.
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Apri it was great insight that LABU would gap up and you said you would sell knowing it would fall. I sold all, as I was concerned at the double top and a big reversal due to a late buy. So we saw a big reversal. Could possibly drop more by the looks having been a double touch 30 min ?
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chartwatchers PRO investment6300
As I'M watching the S&P it might be a buy today again. We see.
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Arpi Will hold then. Hope that you are again right. Thanks for sharing
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I think, whatever LABU does today it must not close lower than yesterday.
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Looks like buyers are at $31. Check volume on 5 min chart.
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I would call the end of the drop here.
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Posting it again, since it dissapeared.... ?
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You cant chart it with chart patterns. It's a 3x etf.
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aksjetom PRO chartwatchers
x3= 3x movment.. so movement should not be problem. pattern in itself I also dont see why cant be trusted. We are talking about a pattern in price, just becouse its multiplied with 3 does not change the pattern?
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http://etfdb.com/etf-trading-strategies/the-5-most-important-chart-patterns-for-etf-traders/
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aksjetom PRO chartwatchers
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look at stoch momentum
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NightFlyz aksjetom
It looks like time to move off of position?
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aksjetom PRO NightFlyz
I don't give advice. Just show what I see. Personally I am out yesterday
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NightFlyz aksjetom
It makes sense, I was expecting breakout after hitting $35 Twice. Shame.
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Interesting. Let's see if it can reverse. My theory is that SP opens up in green tomorrow, it can give it enough boost to break the 200 DMA. It was a bit "unlucky" today at close because of profit taking at SP right before close. The 5d RSI is now below 50, so will be exciting.
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Any thoughts on LABU for today?
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Volume confirming the rise. Looks like we bottomed at $30.80 :).
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Fasten your seat belts LABU passengers next stop is $42-43 ish. :)
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do you think this half-way correct is over? Thanks for your good work, and I really like your analysis!
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I am not sure what to make of this drop. Is this going sideways or down?
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koastech investment6300
I was asking myself the same question.So far today's candle look like a nasty bearish engulfing but the pattern still shows sideways. My view is that lately biotech has been the last to rise and one of the first to fall with the whole market and today the market hasn't been positive.
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I got out from LABU at small gain. Looking for bigger pull back to buy at cheaper price if this trade is still valid.
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If this is Zig-Zag correction we may tag 50% re-tracement of recent move which is around $29.45 in LABU. It will also be 50EMA in XBI at $55.30. That is where I look for re-entry. Otherwise I will just re-enter at what ever DCL price is.
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My LABU algo is only 71% profitable...
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Thoughts on this guy for today?
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It looks now like consolidation triangle. hoping for one more push back to re-enter. I made a mistake yesterday.
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Notyour pbartashevich
I just sold. Great gain. Will reenter at 35.30+
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Arpi Thanks for the update.As usual right again. Let's hope that it can keep momentum.
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Apri, What do you think the next move is? Up or down?
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I guess that shooting star with gap is my little chance to re-enter tomorrow...
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Thank you very much Arpi.
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We actually got two perfect candles of Evening Star, so if tomorrow price go down and closes below $33.40 (mid-point of first long candle)... That would complete the reversal pattern.
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traderzaius pbartashevich
how can you use the chart of LABU to plot your trade? Its a 3x etf. Use XBI instead.
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I plot both. XBI is painting same pattern. I think tomorrow it sill very depend on where S&P is going and dollar. XBI jumped up today in the morning but rest of the day was following S&P. Anyway if it not finish pattern then goes higher. if finishes, i think computers will sell off next day. Today's closing gap and going into negative territory was weak. Shouldn't have done it if very strong.
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200 day moving average taken out.... the moon is next
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Very nice Elliot Waves yesterday

http://charts.stocktwits.com/production/original_58934752.?1469141959
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What if it is like this? Volume today is not that great.
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chartwatchers PRO pbartashevich
Watch the big picture.
We are above the 200 EMA. And closed the gap...
It's very bullish to me.
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pbartashevich PRO chartwatchers
Thank you very much Arpi. I agree 100% with big picture. I left some money though in my pocket. Next week is FOMC meeting and after four weeks of run stocks in general might correct before it a bit. They did not have much of correction after break out, so pre-FOMC couple of days is a good time for many traders to take some profits.
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XBI weekly. I found this big 73 weeks cycle interesting. According to it the ultimate high this year is scheduled on a week Dec 12, 2016.
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