Short Selling The IBB Biotech Index ETF Into A Short-Term Correction

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About: iShares Nasdaq Biotechnology ETF (IBB)
by: Bull & Bear Trading
This article is exclusive for subscribers.
Bull & Bear Trading
Long/short equity, special situations, Growth, Wearables category
Summary

Combining fundamental analysis with chart pattern recognition provides traders with essential information for identifying a market top.

A short-term market top has become increasingly likely as a confluence of factors indicates for this event. This presents a trading opportunity.

Selling and shorting market tops can be profitable. In addition, this action enables a trader to return to the long side of the market when the correction has bottomed.

Military tensions with Iran can be added to a list of other factors that may serve as catalysts to trigger a short-term market correction.

Selecting a vehicle to implement this short-selling strategy is key. The IBB biotech index ETF provides excellent volatility and is likely to trade with the overall markets.

Data by YCharts

The iShares Nasdaq Biotechnology ETF (IBB) carries an equity beta of 1.32. This metric indicates that this security will trade with 32% greater volatility relative to the S&P 500. Traders