FEATURED CONTENT

Bull or Bear Market… Doesn’t matter

Kyle Dennis’ new, 5 Min Strategy is poised to double Your Money Weekly!

Michael S. made 173% with Dollar Ace. So can you!

 

On the watch: The Biotech industry, IBB and LABU

Jeff BishopJeff Bishop ·

The back story: The biotech industry started the summer making good news headlines, with the iShares Nasdaq Biotechnology ETF (IBB) breaking $300 on June 19 and popping up past $320 in a matter of days. It peaked at $327.34 on July 27, and then started a fast hard slide as the dog days of summer arrived, losing 7 percent of its value in two weeks’ time.

The set-up: I think the $300 level is going to be pretty stiff support here, but I also think there is a good chance that biotech makes a new high before the end of the year. Everybody was scared of what President Trump would do and how it would affect the biotech industry, but those worried have passed, again, for now.

The play: For a longer-term play, I am looking at IBB shares, starting a position now. If $300 proves to be the support level I expect, and new highs are to be tested here, the risk-reward is right.

As a short-term trade, I am currently holding IBB Sept. 15 $315 call options – purchased over the last week – and I am watching the Direxion Daily S&P Biotech Bull 3X ETF (LABU). I’ll watch for a test of the support level before trading there, but ultimately I think biotechs offer a good look both as a short-term play and a longer-term hold.

#-#-#

   Jeff Bishop is lead trader at TopStockPicks.com. He runs short-term trading strategies, primarily using leveraged ETFs.  At the time this was published on RagingBull.com, he held Sept. 15 $315 options on IBB but had no shares or open orders in it, and he had no position whatsoever in LABU. He is looking to play both ETFs as described in this commentary.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW