AMEX:LABU   DIREXION DAILY S&P BIOTECH BULL 3X SHARES
275 20 5
In my previous chart, LABU             almost finished AB=CD pattern in a nice Ascending channel . I sold half of my short at 26.8, and keeping the other half to see how the price will act after reaching the lower side of the channel. I mean in the circle, I marked as Breakout.
** Not really sure what will happen in the breakout circle. may be a reflection and price will go up, or a continuation of the down trend.

** As marked in the figure, there is a high possibility that LABU             is getting out of a bearish flag . If this will be the case, then the price will go down in a nasty way.
On the other hand if the price will be reflected in the breakout zone, then it will ride up probably above 45.
## For now I am not putting any new trade, just watching the rest of the short I have, until the picture in the breakout zone will get clearer.
Trade with care, but my advise to wait for now, as entering the trade whether long or short will be risky.
Trade active:
snapshot
Trade active: The price reversed perfectly after touch the lower BB as the previous chart predicted, Let us hope it will be smooth ride up to 43-45 $. Though there is still a possibility that it may go down to 20 before the ride. it is a small possibility but it is there, considering how it behaved back on mid January 2016>
But all in all I took the risk and got in at 25$
hi saif12, I am long LABU, after SPX500 breaks through May-high, I added more positions on LABU. but it drops hard after hitting 35, do you think this is a reasonable correction? we are still in uptrend?
Reply
saif12 PRO mumuyang2
Hello, it happened in the previous rally< look exactly at 25/5/2016, on the daily and 4H curves, It is very expected today and tomorrow the LABU to be down, I do believe it is a small correction and will go back to the trendline. I am holding my positions at least until Friday. I will be more cautious, on the Trend line (5 days from today), As you know it is all best judgment, it does not turn all the time right. But I guess this is part of taking risk.
Good luck
Will post update when I will see it.
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thanks saif12, I'll also wait and see
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hey saif12, how do you think today's big drop?
Reply
saif12 PRO mumuyang2
Hello, as you see, the whole market is a game with people nerves, I have been in the market for 9 years, and gave up a long time ago to react to the emotions, Yes I noticed the big drop today, but look back at the three rallies in the past 5 months, specifically, Feb, 24, April 8, and 25 may< all have corrections in the way up. So I am assuming this time is no difference, and still sticking to my plan to wait few more days.
Good luck
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koastech saif12
Like you I am still holding but getting worried. Thanks for sharing!
Reply
saif12 PRO koastech
Fear is normal, But see what will happen today and tomorrow, all your fear will disappear, and you become relaxed for few days and the fear starts again after that
This is how it works my friend. Market is all about Fear+Greed.
If you can not control those two, then you will always be worried.
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koastech saif12
Thanks.
I don't have as much experience as you do and I am still working on my emotions and the bias they create.
Reply
saif12 PRO koastech
We all been there, and we will never fully control our emotions, it is a matter of time and practice, Just give it sometime, and read the analysis posted in this website, it is a great source of knowledge. I just jointed few weeks ago, as I did not know about this site. But stick with it. The more you read analysis the more you get the comfort needed, as you start knowing what is going on>
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Thanks for your reply saif12, "the market is a game with people nerves" is so accurate. I now believe this is a half-way correction, not a uptrend break-down
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