Yesterday we had a capitulation type of volume in XBI, so I think we are very close to the bottom, or maybe we had it yesterday.
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.
Indicators
MACD is turning up and might want to cross over
RSI 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 ETF 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$
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.
Indicators
MACD is turning up and might want to cross over
RSI 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 ETF 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$
Note
If we break above yesterday's high - 55.83 $- that would be a swing low.It would mean we have the follow through in the following days.
Note
LABU might shine tomorrow after market open.SPX looks great
Note
Closing 50% of the LABU position now.Note
Closing the other 50% of LABU today.Note
Price 43.48$Note
Money is flowing out of SPX as it's breaking out.Note
For the same run (near 45%) we had to be in LABU from the 1st of July till the end of September last time.This time it was 2 weeks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.