Look Familiar Part Two

Earlier today I posted what is a macro concept in Look Familiar?, the Crazy Ivan shakeout of both sides of a lateral range. The example given was yesterday's "trade set-up, Letting the Trade Come to You- NASDAQ Biotechs. What both the IWM and IBB/NASDAQ Biotechs had in common before anything began outside the range was the larger negative divergence that suggested any move above the range would be a short selling opportunity.

I guess just by dumb luck and irony, the IWM started a Crazy Ivan shakeout with a break below the range the very next trading day after the idea was posted, giving it the bear trap it would need for upside short squeeze momentum. Similarly, IBB/NASDAQ Biotechs did the exact same thing at the exact same time, the next trading day after the idea was posted. Call this irony, chance, whatever you like, I believe it's evidence of one of our concepts and it's predictability and probabilities that make it such an effective tool in setting up trades and knowing what to expect. Of course the IBB/ range was significantly ssmaller than the IWM range, thus we'd expect events to transpire faster, for example, we've already crossed above the range's resistance area which is what we expected and we also expected to see distribution in to a move above the resistance area of the range, thus making it a head fake move and an excellent opportunity or asset to short in to its price strength and underlying weakness.

Along the same lines as the larger IWM concept, here's where IBB/NASDAQ Biotechs and BIB (leveraged long NDX biotechs) as well as BIS (leveraged short NDX biotechs) stand.

The trade set-up was for a move ABOVE the range with confirming distribution in to that move. While I'm not saying this is it and as far as IBB can go, I am showing that just like with the IWM, the same process which was forecasted by the longer term charts (see yesterday's post) is underway.

 Because this is a shorter timeframe (30 mins vs 1 day), we've already completed the Crazy Ivan shakeout of both sides of the range, now it's just a matter of the charts lining up to give us a well timed entry, but the process is already underway.

This is IBB as it broke above the range, note the 1 min negative divergence.
 divergence.

 The leveraged long of IBB (BIB) is showing the same distribution in to higher prices as anticipated in yesterday's trade set--up.

And the 1 min BIS (leveraged short) is showing accumulation below the range.

IBB had a 5 min positive divegrence so when this shows signs of going negative, we should be at an area where IBB short or BIS long makes sense.

BIS 5 min is already at a leading positive 5 min divegrence so we only need to see 2 and 3 min charts go positive here with IBB confirmation.

Thus far this trade set-up is going exactly according to yesterday's plan/[post.