Pretty Set-up in the Biotechs

Added on by C. Maoxian.

I'm going to be trading a bit more in 2017 now that baby has started Kindergarten and the house is quieter in the mornings.

Yesterday (1/31/2017) the scanner alerted me to the fact that XBI (the S&P Biotech SPDR) was unusually active around 9:48 AM. I always keep an eye on the recently issued LABU (the Biotech 3x Bull fund based on XBI) these days since it's already fairly liquid and the leverage makes it a decent trading vehicle.

I like to see low risk, high reward set-ups based on the zig-zag "idiot wave pattern," and one thankfully appeared at lunchtime in XBI/LABU off the five minute chart. I might not have been looking as hard at LABU if it hadn't been for that early in the day alert on XBI. 

Click to enlarge