I still think that the 06.29-06.30 gap is a runaway gap - which will never be filled- and yesterday we almost exactly tested back the top of the gap. And today we couldn't fall anymore we are just bouncing from the gap.
So I think entering here is a low risk trade if someone set a stop below yesterday's low.
If we break below yesterday's low and enter into the gap we are going to fill that and we are getting very close to the 49$ level. If we break below 49$ I'm quite sure that we are making lower low in XBI so the line in the sand is the yesterday low for me.
If we take that out I'M not interested in XBI for a while.
is turning up and might want to cross over
left overbought - in the past it was a sign of the next leg up.
We are charting in XBI so you have to trade based on this when buying LABU .
The 3x chart ( LABU ) is not good for charting.
LONG XBI 54.70 $
STOP 52.80 $
LONG LABU 26.90$
STOP when XBI breaks below 52.80$
It would mean we have the follow through in the following days.
SPX looks great
This time it was 2 weeks.
Earning season has been OK so far so would like to see XBI take out the 2016 high before year end and it could come quickly. So another 30-40% rise in LABU perhaps.
When it's done will go into commodities.