XBI trade ideas
Biotech... leading the market down... serious support broken...I have been monitoring this index for years and a *serious* support level was *smashed* today. Combined with the crashing of bitcoin (prior to making new ATHs), extremely weak RSI, and the rise of the VIX, I believe the market is in for a serious reckoning. Prepare for cash and short strategies! FED has one final save over the next several months IMHO and it will not last.
XBI - Oct 18Watching XBI to short at 85-86 if it fails to close above the triangle for at least 3 consecutive days.
Targeting 80 Put Oct 18.
1W) Biotech's RollercoasterWill have a serious drop soon.
But it's all the set up for the bullish BAT pattern guys.
Biotech - Bearish BreakoutPotential downside breakout for biotech. Still too early to confirm whether it's real or a fake, keep an eye on this one.
Entered 25% position so far, will look to add more if further confirmation appears.
XBI Biotech ETFWe are waiting the macd and aron cross bull signal, please look the yellow circles, and the break out of the triangle chart...
atr daily time frame is in the bull territory...
we will see...
10 years bullish trendline just few months away from being HiTThe democrats are the biggest threat to the healthcare sector … They do not like the present healthcare system and they want "HEALTHCARE REFORM" , free for all healthcare , FREE MEDICATIONS AND cheap drug prices ,
Biotech down on news, may enter new downtrend.The biotech sector fell today news that Donald Trump intends to sign an executive order demanding that pharmaceutical companies give the US government "favored nation" prices. The news may not be as bad as it sounds, because Trump is apparently only launching a pilot program that will effect a small number of drugs. However, it's hard to predict the market's reaction to the news. Biotech is still above its trendline and its MACD is still above the signal line, so it's still bullish for now. But it could breach both tomorrow and enter a downturn. Beware if XBI falls below about 84.90 tomorrow.
Biotech Sector bullish channelThere is a good RRR to enter XBI today. We seem to be in a bullish channel (showed in chart).
IMMU - Which is 1.5% of the sector, is also a good option. (higher risk - higher reward).
Bear call spread on XBI July expneed to add more bearish positions because I closed a few this morning
opened 86/88 bear call spread for .53 credit
86 is previous R and RSI can't seem to break above 50
OPENING: XBI JUNE 21ST 75/78/92/95 IRON CONDOR... for a 1.04/contract credit.
Metrics:
Max Profit: $104/contract
Max Loss/Buying Power Effect: $196/contract
Break Evens: 76.96/93.04
Delta/Theta: -2.95/1.41
Notes: Back into biotech, collecting one-third the width of the wings. Will look to manage the trade at side approaching worthless (i.e., rolling toward the tested side) with a profit target of 50% max.
Xbi trading plan.Biotech needs to hold $85.3(23.6% Fib retracement). Or next support will be 82.5 or 79.0
$XBI $SPY $LABD $LABU
Technical and Fundamental Factors Point to Shorting OpportunityRising wedge to triple top @ 93-94 then bearish confirmation breaking the neckline @85. Also, upside momentum declining as indicated by the RSI and MACD divergence, with MACD crossing the zero line. Political rhetoric by both Democrats and Republicans suggesting government intervention as the solution for combating rising healthcare cost. Also, majority of constituent names have weak fundamentals (e.g., negative PE) and may be first to be discarded in a major downturn for their high-beta speculative nature. VIX also at all time low and a spike in vol could propel name to the downside quite aggressively. Severe short squeeze may be possible along the way (as we saw today) due to very large short interest in the name. But near-term path of least resistance (trend) appear to be down rather than up.
OPENING: XBI MAY 17TH 80/85/98/103 IRON CONDOR... for a 1.67/contract credit.
Metrics:
Max Profit: 1.67 ($167)
Max Loss/Buying Power Effect: 3.33 ($333)
Break Evens: 83.33/99.67
Delta: -2.03
Theta: 2.02
Notes: Some nondirectional premium selling here in an exchange-traded fund with high implied (24.8%) relative to the broad market; going 25 delta with the shorts, five-wide with the longs and collecting one-third the width of the wings. Will look to take profit at 50% max.
