I should have posted this with today's earlier JAZZ biotech short idea, this is the Biotech Index. I prefer that the index as well as the individual stock are both showing weak underlying action.
From long term to short
The long term weekly 3C chart for IBB going back to 2002. Accumulation areas in white, distribution areas in red. Currently the Index is leading negative, which helps the JAZZ trade as the Industry group typically has the second most powerful gravitational pull on a stock's price with the general market having the greatest influence.
The hourly hart for IBB also leading negative with clear tops in July and November.
The 15 min chart is excellent for reversals of swing length trends as we have seen recently, it appears the Index has seen a lot of short selling in to this last run up.
The intraday 5 min chart shows accumulation sending IBB higher and distribution appears to have started pretty early on, it is also no leading negative.
Again, if you have questions about the JAZZ trade set up let me know. I'll be spending a lot of time this weekend scanning for individual stock trades rather then market directional trades as we are starting to see some industry rotation or at least industry lags as has been apparent in financials.
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