Barring a miraculous stick save into the close, the PBE (PowerShares Dynamic Biotech Portfolio ETF) will print a solid weekly close below this 3 year bearish rising wedge pattern. Horizontal lines are likely downside targets in the coming months. IBB (iShares Nasdaq Biotechnology Index Fund ETF), as with all other biotech sector ETFs, is poised to print a solid weekly close below this large bearish rising wedge pattern. The blue primary uptrend line is my initial target at this time. Should that level give way, IBB will most likely continue down to the 278 are over time.
Since publishing the Biotech Wreck Pending video just 6 trading sessions ago, PBE has fallen 6% while my preferred shorting proxy, LABU (3x Bullish Biotech ETF) has plunged over 22%. As of now, LABU will be added as an official Active Short Trade. Suggested targets & stops will follow soon with the targets to be based on the charts of the 1x biotech ETFs. All of the top picks in the sector (for those preferring to short individual stocks) have moved sharply lower since that video was posted just over a week ago but still look to have plenty of meat left on the bone if shorted or added to at this time. As volatility is likely to continue to spike in these stocks, consider beta-adjusting your position size(s) accordingly.