Short set up XBI- DBiotech past week has been in a downtrend. Short below yesterday's close. $IBB $XBI $LABD
XBI trade ideas
$XBI $LABU Turtle Soup BUY on the DAILY (Linda Raschke pattern)$XBI $LABU closed above previous 20 DAY lows XBI(94.01)|LABU(91.30)/ after making new 20 day lows XBI(93.99)|LABU(90.08). This sets up a power reversal pattern on the daily chart. Stop = prior 20 DAY lows. Low ADX (15) enhances "reversal effect". See my previous "Turtle Soup" charts & outcomes to define projections. Trail stops.
XBI Short?As XBI sits right now, we either see nice upside or a crack in the chart to the downside. Big earnings names coming up but XBI is now sitting below the 20MA which would be a short signal for me.
Biotechs getting readyXBI getting ready for a move after some super healthy consolidation, bulls need to see a break of the 101.05/101.06 double top and a break of RSI resistance for room to the upside. Earnings from some larger names will like help XBI to pick a direction soon. LABD and LABU will be on my radar this week. I will be much more likely to play a break if overall market moves in the same direction.
XBI Simple trendIn XBI i have been playing this trend for days now. Very simple XBI like to test the 13 ema and bounce. When it is near or a little below i buy this weeks closest itm calls. I sell the position before eod. i set my stoo roughly .20 below the 13 ema on the daily. Nothing fancy here. Sometimes the easiest trades are right in front of our face. you can follow my actual entry and exit on twitter @breakingoptions
OPENING: XBI JUNE 15TH 77/80/93/96 IRON CONDOR... for a 1.00/contract credit.
Metrics:
Probability of Profit: 57%
Max Profit: $100/contract
Max Loss: $200/contract
Break Evens: 79.00/94.00
Delta: -.28
Notes: Will shoot to take profit at 50% max ... .
BIOTECH bouncing back!!A choppy market since the February market turmoil, but I think we are back on track. Longterm we are still locked in a bullish play, and I think we may have completed a 4thwave play on the internal wave count and are now making moves to shape up the final 5th-wave.
Here is the longterm view so far:
XBI perfect rejection of daily downtrend lineXBI maintained it's daily higher low by a small margin on Thursday which provided a great bottom fishing play as SPY hourly was very oversold. Daily downtrend line provided a perfect LABU exit, and now waiting for a break of 88.65 and even more key 89.16 to enter a long swing (if SPY breaks bullish with it), or a break down of 85.06 for a short swing - if SPY breaks bearish with it.
Potential Continuation Pattern XBIBacktesting the breakout zone giving a high probability bounce here
Biotech is looking weakThe %R on the weekly candle here is showing signs that momentum is shifting down as the RSI still has room to move down. Notice the last time XBI bottomed was with the RSI, not %R. The %R has acted as a bottom over the last 2 years in this channel. However, now that the channel has broken down, the status quo has changed.
Bullish SharkBullish Shark with bullish divergence, and price is bouncing off of a significant trendline.
13% down on XBI, 40% upside on LabDNice double top, retrace to the bottom of the channel, potential full breakdown depending on the broader market over the next month.
Expect strengthLately we've been seeing out performance vs SPX in tech XLK, financials XLF and consumer discretionary XLY. I think we have no reason not to expect strength in XBI biotech to pick up some steam in the weeks to come.
