XBI trade ideas
XBI Breakout or Fakeout?Is it returning to the point of break out or faking out and heading much lower?
XBI weekly - Long term outlookHere's a quick look at XBI on the weekly and what I see. I'll be shorting everytime it hits the top of the trendline. I'll be shorting every divergence and overbought signals on the 60 & 240.
There's a lot of hype with the bio sector since its 2016 lows, which is exactly what a B wave does. It creates hope, only to have it taken away. This is a multi year outlook. There's no way of knowing where the wave B top will be. This corrective structure can last another 6 months, year, maybe more! We're not "there" yet for the big bio short, but 90% of the time, a setup like this (especially on a weekly chart) is super bearish. Which is why I will always take the sell at the top of the trendline moving forward. GL
XBI 1H Short - DivergenceYou wouldn't catch me going long here (XBI) at these levels on the 60 minute chart. RSI and MACD divergence to price ratio is CRAZY. On watch for a short tomorrow. GL
Multiple Head and shoulders in XBIMultiple bearish head and shoulders but a more short term inverse head and shoulders looks possible too
OPENING: XBI FEB 15TH 53/62/62/71 IRON FLY... for a 5.29 credit. IVR isn't as high as I'd like it (>70% over the preceding six months), but I'll take it ... .
Metrics:
Max Profit: $529
Max Loss: $371/contract
Break Evens: 56.61/67.29
Notes: As will all flies, will look to take profit at 25% max.
LABU - S&P - XBIA few of you asked to update LABU, so here is what I think.
Unfortunatley this doesn't look good. While S&P had a nice rally in the last month XBI and LABU was not able to print a rally. It was in a decline mode.
And now we have a problem as stocks (S&P) might starting to move down into the DCL XBI and LABU might test back the gap or in a worse case it might print a failed intermediate cycle....
I think the sector is waiting for Trump... I wouldn't do anything here right now...
We have to wait if Trump is supporting Biotech - the biggest opportunity for USA - or he just stays at the old sectors...
OPENING: XBI JAN 20TH 51.67/61/61/70 IRON FLYThere isn't much premium out there to be sold in index or sector exchange traded funds, but this is one of them ... .
Metrics:
Probability of Profit: 46%
Max Profit: $518/contract
Max Loss: $415/contract
Break Evens: 55.82/66.18
Notes: I'll shoot to take profit at 25% of max ... .
XBI - Weakness AheadA weak sector for when the market switches gears. When the broad indices eventually start to pull back, XBI should bare a large part of the selling. My stop is at 61.50, risking .60c to potentially make $8.50
TRADE IDEA: XBI JAN 20TH 53.33/61.67/70 IRON FLYRotating into exchange-traded funds here ... . EWZ and XBI appear to have the best implied volatility rank/implied volatility percentage metrics. I already have an EWZ fly on, so XBI it is ... .
Metrics:
Probability of Profit: 44%
Max Profit: 5.29 ($529)/contract
Max Loss: 3.00 ($300)/contract
Break Evens: 56.38/66.96
Notes: I'm going to shoot for a fill that is .05 about the mid price of 5.29. If it fills, it fills; no worries. Will look to manage at 25% of max profit as I do with all short straddles/iron flies.
XBI Big Move ComingI believe a big move is coming. I'm leaning bullish, but if we lose major support around 57.80 this will be a short play. It's important to be conservative. Wait for the break of resistance, or break of support.
Biotech RideBiotech went wild after Donald entered the white house.
It will rage for a while longer. When it hit the 75 mark, enter short with LABD.
Then ride it down to see the gap closing.
There is a risk that it will close the gap before it hits 75 - by e.g. double topping, but I find it more likely that it will now continue up to 75.
75 is the critical number for the short entry.
Good R/R for short position in XBI?Technically Speaking
Price is trading right up to the pivot level 68.
Where is the R/R?
The R/R favors the shorts at these levels, in my opinion. I would target the rising trendline noted on the chart. Stop above 73.
If long, you have three options, hold and hope for bigger gains,take profits, or use a trailing stop.
As always, trade your plan and execute.
