We experienced a very large pull back the past few days and it is reaching the previous high. This may serve as a support on the daily chart.
Looking at the ichimoku, there have been two points recently that the chikou span struggled to cross through the price to signal a bearish sentiment. If this pushes through it may be possible that we are more in the bearish...
In January 2021, you a quick selloff in XBI caused RSI to dip below 20 while directional selling volume also spiked over 50 (yellow rings). This "oversold" condition led to a quick sharp up move (yellow arrow, RSI crossed up over red line), then consolidation before a prolonged move higher.
Now I am looking at a peak in RSI and a spike in directional buying...
We've just had a 10% correction and biotech is about to explode with all of the MRNA applications that will expand after the COVID vaccine research (see also AGTC with new vision therapies).
I bought today and will add if we dip in the $152-156 range looking for a bounce on the 50 Day MA and a move higher shortly thereafter.
Sold XBI near the top after a 25%...
Biotech etf year in review:
C <=> $144
Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading...
... for a 2.07 credit.
Notes: With 30-day at 39.2% and expiry-specific at 38.7%, selling a little bit of premium in biotech. Will run to approaching worthless/take assignment, sell call against if assigned. 1.68% ROC as a function of notional risk.
Bubbles are natural & good until everybody talks about it.
Didn't hear of anyone talking about it, so its a good time to make call - THE NEXT BUBBLE WILL BE IN BIOTECH (if we IGNORE EV and SPAC's ofcourse)
My bet is:
1. small cap bios could double-tripple from here.
2. heavy names could get +50%
Too much money, to few shares & good companies.
... for a 5.91 credit in total.
Notes: Going where the volatility is ... . 30-day greater than 35% (39.8%) with the November at-the-money short straddle paying 13.1% of where the stock is currently trading.
This isn't usually an IRA play I go for, since you won't get paid to wait if you get assigned shares (the yield is absolutely paltry at .10%). However,...
This is XBI at the 4 hour view. It seems that my biotech channel was a success. XBI tried to gap above the top of the channel. However, whenever the price goes above the long-term channel, it tends to get hammered right back in.
This may provide some safer short opportunities under these conditions.
1) XBI is at the top or above the top of the channel.
Please check out my blog post for the full details:
Now we may be seeing a double RSI divergence coming up here, which is where we exit another third of our position. Very key to also think on the bullish side here and consider that the RSI could hit new highs, which discounts the bearish...