Nightstar

A Play On BIOTECH

AMEX:XBI   SPDR S&P BIOTECH ETF
278 11 9
10 months ago
Here's the thing.. whether you like it or not the Stock Market is heading higher and if you really wanna maximize your upside potential then BIOTECH is where you should park some of your money. Biotech is very much on the move but I would wait for a bounce off the trendline to buy back in -- Momentum is on our side but RSI/Stochastics are showing a tad overbought in the short to medium term.

Ps: And if your balls are made of steel then you might want to take a look at LABU             to further capitalize on any potential gains.
9 months ago
Comment: XBI traded and closed below its 10DMA today and could be looking for a correction. I will be looking to buy back in [via LABU] once RSI/TSI reaches oversold levels, and Price finds support around $54 -- give or take a dollar. The 100DMA should also provide support as well.

Ps: Carl Icahn sold his Apple shares and reinvested in Bio/Pharma. A good omen!

snapshot
9 months ago
Comment: Right on target.. XBI could drop a little more over the next couple of days but I will definitely be buying in if we get a retest of $54.. And possibly once more if we are fortunate enough to get Price/RSI/TSI bullish divergence like we did back in May 2016. Also worth mentioning.. with tomorrow's FOMC meeting and Brexit looming, things could get a little hazy! Hang tight.

snapshot
9 months ago
Comment: LONG LABU @$30. Will pick up some more if the Market decides to retest the current lows.
9 months ago
Comment: Another incredible buying opportunity. XBI just tagged trendline support and the 100DMA.

Picking up more LABU @$27
8 months ago
Comment: XBI couldn't break through the 200 DMA and could as a result correct all the way back down to $54.. which means that I will look to sell some of my LABU shares tomorrow at the open [probably should've done it today but oh well] and look to reload when my RSI/TSI indicator has dropped into 'oversold' territory.

Big picture: I am LONG Biotech but would like to buy at the bottom of the range, just in case this consolidation continues to drag on a little longer than expected. Hopefully I won't get left behind :/ but at the same time, it's important to adapt to an ever changing environment.

snapshot
8 months ago
Comment: Option #2 -- Keep your current shares and buy the dips or move to an un-leveraged position!
Richmand808 PRO
9 months ago
Thanks for the share Nightstar. $27 is probably a decent entry point. Arpi was happy to get in near $29 yesterday. I am short gold now and I am torn between LABU and saving cash for the BREXIT. I think (hope) LABU has a tad more down to go so I will have time to pick it up off a bottom bounce. Hope you make a million on this one!
Reply
Nightstar Richmand808
9 months ago
Tough choice! I currently have a bit of both, LABU and Miners :) I have a good feeling.
+1 Reply
dmz
9 months ago
Any plan for this now if brexit wins?
Reply
Nightstar dmz
9 months ago
What's interesting is that I was always a little 'impulsive' when I first started trading.. Since then, I've learned to exercise patience, meaning I'd like to see the dust settle first and then take action. And if that means I have to take a loss or move over to an 'un-leveraged' position then that's Ok.. Thankfully I'm well diversified and can withstand a 'jab punch', haha
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dmz Nightstar
9 months ago
Thanks good advice. Will sit tight and see how things play out.
Reply
Richmand808 PRO
8 months ago
You nailed it Nightstar. I am in nice profit on LABU from $27. i like how it keeps going up! haha
Reply
Nightstar Richmand808
8 months ago
Good for you! I only wish I had more cash on hand to pick up shares at $22 but oh well, you can't have it all :) With S&P breaking to new highs, Biotech should follow suit. Let's see if we can break $40.
Reply
Richmand808 PRO Nightstar
8 months ago
Yes me too, if only I had just a little more money then I would be REALLY happy! haha!

i saw LABU $22 also but didn't have the confidence to grab the bottom. Biotech is new to me but expecting stock markets to remain upward now at least until the elections so expect Biotech to trend up too. Looks like we are in the XBI resistance zone at $57 to $60 now, showing BTK Rzone to be 3240 to 3324. I am showing LABU zone starting 38.27 to 39.91. Not sure I will have the confidence to hold LABU once we are into that zone. If LABU breaks $40 you think it could breakout above $42 channel top area? Seems like blue sky past $42.
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Nightstar Richmand808
8 months ago
I see blue skies above $40 as well but LABU seems to be stuck in a range at the moment. I might sell some shares tomorrow and wait for sentiment to reset.
Reply
Richmand808 PRO Nightstar
8 months ago
It was such a nice run too. Hate to sell at the down but 200 DMA was cryptonite. Maybe the S&P shook it up too. Daily chart showed reversal risk on the 8th but I was in the money and in denial. Risk Oscillator showing divergence suggesting hidden strength, but agreeing with SMI and CCI saying more down likely near term.
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Richmand808 PRO Richmand808
8 months ago
correction...I meant the 100 EMA on the daily LABU chart not the 200 DMA.
Reply
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