Short biotechnology again near trend line resistance
Biotech bubble has burst.
Every rallies are to be sold, and despite the euphoria/new highs in S&P and Nasdaq have barely registered a decent retracement in the biotech sector..
Here's a larger picture of how far biotechs have went since 2008:
The uptrend in S&P is limited, and it will only be a matter of time before it collapses off this rising wedge. However it is also risky to go against Janet Yellen (FED) with unlimited cash in its balance sheet. A short on a specific sector would be a much safer bet.
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I'm long on ZBIO (3x short biotech ETF) at 22.51, with a target around $30~40.
Every rallies are to be sold, and despite the euphoria/new highs in S&P and Nasdaq have barely registered a decent retracement in the biotech sector..
Here's a larger picture of how far biotechs have went since 2008:
The uptrend in S&P is limited, and it will only be a matter of time before it collapses off this rising wedge. However it is also risky to go against Janet Yellen (FED) with unlimited cash in its balance sheet. A short on a specific sector would be a much safer bet.
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I'm long on ZBIO (3x short biotech ETF) at 22.51, with a target around $30~40.
Comment:
Trend confirmed as of today's closing. S&P is bearish.
IBB:
S&P500:
Sit tight and watch it roll now!
IBB:
S&P500:
Sit tight and watch it roll now!
Comment:
Trade closed.
Pretty speculative still, proceed with caution. I don't see signals of a reversal from the market yet, but simply a high probability trade.