Taylor Conway, lead day trader at PennyPro.com, said that Monday’s market action and the ongoing rise in biotechnology stocks highlighted the iShares Nasdaq Biotechnology ETF (IBB) and its inability to break through resistance levels. If the ETF fails to move upward again, Conway said he expects it to drop, potentially by as much as 30 points, going back down toward recent support levels. In this “Off tthe Charts” segment, he said he would play the Direxion Daily S&P Biotech Bear 3X Shares ETF (LABD) as a means of playing the pending decline, setting tight stops and creating a good risk-to-reward potential on the trade.

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   Taylor Conway is the lead day trader at PennyPro.com. He is a short-term trader of stocks and ETFs. At the time this interview aired, he had no shares, options or open orders in IBB or LABD, and had no plans to trade the ETFs, having researched biotech stocks to gain background information on an industry with individual issues he was looking to trade. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.

Author: RagingBull

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