AMEX:LABU   Direxion Daily S&P Biotech Bull 3X Shares
As the month of October begins and broader markets sold off, Biotech sectors are still negative/ flat for the year. Market headlines from high prescription drug prices and lawsuits regarding the opioid epidemic have plagued some of the IBB's largest holdings; which have held biotech ETF's down while the S&P reached all time highs.

Fast-Track Synopsis:

  • Biotech is a known high volatility trading environment;
  • More Investors will become "Traders" with new $0 trading fee platforms from Schwab and TD Ameritrade.
  • Once people begin trading stocks, they will find that high volatility is how the "big" day-trade/ swing trading money is made.
  • New Med-tech and Biotechnology therapies (i.e. gene therapies, NASH/ NAFLD) are ripening and getting closer to approval.
  • There are currently over 240 biotechnology companies with Gene therapy IP
  • IP has been growing with RMAT and Breakthrough Designations due to unmet need of new novel treatments;
  • As Biotech rolls into year-end, lower interest rates will propel company growth models which I believe will help drive buy outs.

LABU Technical Analysis:

Bullish Harmonic Gartley pattern and close to 52-week low.
1-year Gartley pattern should move LABU stock price back up to around $40 level (resistance) where we will be watching for a potential breakout
CCI measured "oversold" with the end of September pullback, CCI-slope is now trending higher,
This last pullback also measures a double bottom (data points are from Christmas 2018 and present)
Intra-day bullish RSI divergence, Daily RSI trending higher;
the MS Signal recently flipped green as of 10/1/2019 and is still indicating a nice swing opportunity to come.
Three-drives pattern bouncing toward resistance concurrent with double bottom and Gartley pattern .
Look for the support level (marked (x)) to hold.

See conclusion here!

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Disclosure: I do not own LABU , I may buy or sell within the next 48 hours. This is not a recommendation to buy or sell. Please do your homework before investing.

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