NASDAQ Biotechs Update

This is a follow up to a trade idea put out on Monday, January 5th, Letting the Trade Come to You- NASDAQ Biotechs. For the longer term / macro charts, refer to the post linked above.

This is a short trade idea, it followed the Crazy Ivan concept in the IWM nearly identically although on a different timeframe, which led me to post these yesterday, Look Familiar? and Look Familiar Part Two.

In any case, the idea was to let the trade come to you which gives you a better entry in IBB (NASDAQ Biotechs ) short or BIS (2x short NASDAQ Biotechs) long.

Here are the updated charts now that price has moved to the area which we were expecting. Remember IBB is NASDAQ Biotechs, BIB is 2x long NDX Bios and BIS is the leveraged inverse, 2x short NDX Biotechs.

 This is the range that inspired the trade idea/set-up and was behind the last two posts from yesterday linked above. There was a Crazy Ivan shakeout below the range and the move we were looking for above the range. At the yellow arrow we have big volume on the open and the asset's inability to hold the gains which smells a bit like bearish churning.

 The gap has been filled, the only other area of interest is the recent former high to the left, that doesn't have to be hit, but I would keep it in mind until all of the charts have lined up negative with confirmation and the broad market also is showing the same, especially the QQQ.

 Here's the 1 min chart with range resistance, the head fake and accumulation which creates upside momentum by setting a bear trap and the resulting short squeeze, the exact same thing that happened with the IWM on our 12/12 forecast for the market. Note the leading negative divegrence once prices cross above the range's resistance.

When we post trade set-ups, they are already based on the longer term charts and probabilities so we are expecting to see this kind of confirmation based on the probabilities so this isn't a lucky guess that went our way, it was specifically chosen for the probabilities already in place suggesting things would go our way.

 This is the IBB 2 min chart, also confirming distribution in to the breakout.

 The 3 min is also  confirming.

This is BIS, the actual asset that I'd chose as a long, it is a 2x or Ultrashort NASDAQ Biotechs, it is also confirming on all of the above timeframes as well as this 5 min with a positive divegrence, remember because it is the inverse of IBB above, it should give the exact opposite signal.

At this point, there's only 1 chart left I'd be looking for confirmation on...

 The 5 min IBB chart which is where this assets positive divegrence reached to, after 5 min the longer term probabilities are negative at the 10 min chart so while BIS is already confirming as is BIB (2x long) with a negative 5 min chart. I'd like to see this chart turn negative as well and the broad market look ready to turn back down before entering a full size position in BIS long or IBB short.

This is the 10 min IBB mentioned above that is already negative and everything longer than this is already negative, so with one more chart we have a full house across 3 different assets in multiple timeframes.