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.
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Pretty speculative still, proceed with caution. I don't see signals of a reversal from the market yet, but simply a high probability trade.
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Trend confirmed as of today's closing. S&P is bearish.
i should have alerted u on this
wick wick buy signal
LastBattle
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In fact I've closed the day before on 4% profit when the S&P rallied on intra-day for a quick scalp hoping to short higher, but since that trade is still valid I didn't update the post.
Now that the trade have failed completely :)
LastBattle
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watching nasdaq to re-enter short again... This thing looks toppy, but no confirmation yet.
wick wick buy signal