How to short Biotech?
- Thread starter heavenskrow
- Start date
Suicidal tendencies.
Volumes were enormous during Friday's drop.
Maybe there is a reason?
Maybe insiders know ?
CM
Maybe but how many times have we seen this, bio techs drop and rally even higher, Im more bearish than anyone on this board and Im taking the long side. Its only for a bounce as I see biotech going down even further but I do see a bounce, Im cost averaged into LABU around $20....when I was short the bio techs about a month or 2 ago with BIS I sold out for a quick profit, it dropped pretty hard after I sold it, but now seeing it at $40+ man do I wish I held out for some of the heavy gains the last 2 weeks in that ETF.
Normally, I would agree. But we are not any more in a normal market.
+ / - 3 standard deviation.
bollinger band are widening.
volumes are spiking.
last support broke.
There is a panic.
So you better get out if you are square (or not), and short as fast as you can.
CM
I refuse to short now,
I was short when BIS was trading in the mid 20 to upper 20's seeing that now at $40+, no thanks, I think the biotech will rally at least 5% sooner than later pushing LABU up to $25+, once the next rally takes place I will gladly go short, Its too late in my opinion to add any shorts only because I think there is a short term rally in the cards after this last heavy heavy sell off that of course no one saw coming......
All I know is I've been shorting Biotech since March as "Smart Money" even though I am not smart money.
Finally people are catching on, and it's just starting to hit to the news wire for just a small correction. I believe we have seen nothing yet.
If you look at my previous posts, I asked how do you size a position that you think will make a very big move with a low risk. That was biotech. Here is my analysis- http://emptymindtrading.com/shorting-biotech/
When my friend got back from his vacation(early August), I asked him what he thinks about biotech, he tells me I'd rather short something that's weaker///that he doesn't see anything bearish about it.
-That was the same mistake I made when I was first starting to trade, I would sell something weak and buy when it's up.... now I short when it's high and buy when it's low and people are fearful.
When I talked to my Mom, she talks about Biotech as if it's dot-com that it is the new thing and will go up FOREVER. (She's been working in the bio/pharma for almost 5 years+ now)
When I chart about 50+ biotech stocks, they all are coinciding with key resistance levels. Most have now setup H&S, breaking key support levels.
Kyle Bass has also from this year just started questioning patents. Drug price abuse/CVS is starting to hit the wire. It's hard to short something that everyone thinks it's going up. The public are all talking about biotech stocks...
But it's always great to have another traders view, because it helps me keep me in check and stay logical instead of emotional. Anything could happen in the market, and I have to be aware that a huge bounce can take place. Even today, biotech can rally high and close very bullish!
Finally people are catching on, and it's just starting to hit to the news wire for just a small correction. I believe we have seen nothing yet.
If you look at my previous posts, I asked how do you size a position that you think will make a very big move with a low risk. That was biotech. Here is my analysis- http://emptymindtrading.com/shorting-biotech/
When my friend got back from his vacation(early August), I asked him what he thinks about biotech, he tells me I'd rather short something that's weaker///that he doesn't see anything bearish about it.
-That was the same mistake I made when I was first starting to trade, I would sell something weak and buy when it's up.... now I short when it's high and buy when it's low and people are fearful.
When I talked to my Mom, she talks about Biotech as if it's dot-com that it is the new thing and will go up FOREVER. (She's been working in the bio/pharma for almost 5 years+ now)
When I chart about 50+ biotech stocks, they all are coinciding with key resistance levels. Most have now setup H&S, breaking key support levels.
Kyle Bass has also from this year just started questioning patents. Drug price abuse/CVS is starting to hit the wire. It's hard to short something that everyone thinks it's going up. The public are all talking about biotech stocks...
But it's always great to have another traders view, because it helps me keep me in check and stay logical instead of emotional. Anything could happen in the market, and I have to be aware that a huge bounce can take place. Even today, biotech can rally high and close very bullish!
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