Didn't know XBI had a 3x ETF. Glad I just found out about it, lol. It looks insane on the weekly chart. Completely died 1.5 years ago, been basing ever since. Seems like a decent squeeze play from here. You could buy some really far out $4.50 calls and end up above your breakeven very quickly if this thing pops. So not hard to imagine how it could squeeze if enough large players end up highly leveraged into a winning position at these extreme bear market lows. I mean it's down this year 30%, after having been down 80% the year prior.. after having been down 62% the year before that. Volume has been declining since it bottomed. LABU naturally has severely underperformed XBI while it has fallen/consolidated, but if XBI enters into a period of bullish action, expect LABU to outperform XBI to the upside for a period of time.
Learn more about how to trade something like 3X Bull, Biotech ETF here: diamondarm.com
Didn't know XBI had a 3x ETF. Glad I just found out about it, lol. It looks insane on the weekly chart. Completely died 1.5 years ago, been basing ever since. Seems like a decent squeeze play from here. You could buy some really far out $4.50 calls and end up above your breakeven very quickly if this thing pops. So not hard to imagine how it could squeeze if enough large players end up highly leveraged into a winning position at these extreme bear market lows. I mean it's down this year 30%, after having been down 80% the year prior.. after having been down 62% the year before that. Volume has been declining since it bottomed. LABU naturally has severely underperformed XBI while it has fallen/consolidated, but if XBI enters into a period of bullish action, expect LABU to outperform XBI to the upside for a period of time.
I appreciate your deep reflections on it.
Today, XBI hit a critical low. LABU went sub $4 this week. Both heavily oversold. Next week will be interesting.
Always use stoploss.