looking for a retrace of the .618 fib level which should give way to the cup/handle breakout pattern of $xbi also notice price action at the top of the wedge
$XBI, which is a biotech ETF, is showing a potential bearish 2-1-2 continuation on the quarterly chart.
Because of this, I will be looking at biotech stocks for a short.
I believe that XLF has potential to touch $32.34 if it breaks $34 and may even retrace back to $30.20. Have patience and wait for it to break 20dma. Huge potential for profits from puts. It may happen in next week or two. Not a financial advice and as always please do your own DD.
Setup - simple base breakout after a solid 70% move off the lows followed by 5 weeks of consolidation. Earnings during consolidation were below expectation. However, after a slight selloff, shares were gobbled back up and volatility was squeezed out right below the breakout level. Half size because the broad market is running a bit hot and could be due for a...
The biotechs led the market from the lows in July. Last week, the sector had a sideways move as it rebuilds above the moving averages. Keep it on your radar in case it triggers above $95.18 for a move past $100 in the coming sessions. $90 is active support for the week.
Biotech was one of the first sectors in the market to show relative strength and catch some bids throughout the June bottoming process.
IBB rallied 20% off the lows and then proceeded to consolidate sideways for 3 weeks. This Wednesday, IBB broke out of that consolidation with a gap up on heavy volume and is now finding more follow-through.
Keep an eye on the...
... for a 3.81 debit.
Comments: Taking a small loser here, since I seem to have been fiddling with it forever. Total credits collected of 3.41. (See Post Below). .40 ($40) realized loss.
I first typed this up yesterday and accidently published it as a private idea. Here's the second attempt:
I rarely trade tickers with overhead resistance. The idea is to buy when the trend is clearly up and there's no overhead supply to dampen upward prices. Buy high and sell higher as it were. However, during selloffs, bear markets, etc, there is going to be...
... for a 9.88 debit.
Comments: As with my IWM trade, paying a debit to uninvert this setup, free up buying power, and turn it into a higher POP (Probability of Profit) setup. I had collected a total of 11.65 in credits up to this point, so I'm still net credit by 1.77 after doing this, but with a smaller buying power footprint and with "delta/theta happy"...
