Lawmakers benefit from taxes generated from biotech, and big pharma companies that are generating massive revenues. Expecting $LABU ~$50-55 range by mid September.
If you have ever spent more than a few hours in the Stocks and Indices chat room, you'll soon get the impression that the trading universe is seemingly made up primarily of E-Mini S&P Futures, SPX CFD's, and/or SPY (I probably exaggerate a touch, but that's the overall impression I get), along with a repeated frustration with the way the S&P is behaving in one way...
There's major global pull back, Biotechnology will scale back, but not as much as SP500 and DOW.
You should hedge properly, VIX will be back soon.
*Election year is Biotech Year*
The price broke the first channel trend (blue), then broke the second trend channel (pink), and then formed the first wave (1) completed the second wave (2), and now going like a rocket with wave 3.
I am in LABU long from 25. My first target of LABU was 43-45, accomplished, I raised the target to LABU=60 for now. as XBI is going easy to 85-90
Trade with care...
The stock market was hit hard on the BREXIT vote. I believe LABU has now found a bottom. The LABU ETF shows a trend line break and a double bottom. The double bottom seems to be holding. Set your stops there. %R is over sold and recovering. Last time we saw this we had a run to the upper trend line. A similar move this time will bring us to $42. A very nice return...
XBI below every major MA except 100 SMA and this lies on an important point in the Kumo. IMO if this breaks and sell off starts, it could impact the entire market.
