Late in the trading day as the market tanked, news hit that there might be a buyout of Biogen Inc (NASDAQ:BIIB) by Merck & Co., Inc. (NYSE:MRK) or Allergan plc Ordinary Shares (NYSE:AGN). This caused the biotech ETF IBB to jump and saved the stock market from a large decline.
Yesterday, I had posted how the max move on IBB was $297-$300. Today, the high on the biotech ETF was $299.00, smack in the middle of the sell range. This now tells me it is safe to inch into a short on the IBB or buy puts. Most investors will be too scared considering the potential buyout news, but if you look at history, the end of moves come on euphoria just like this.
1000's of Pro Traders like myself put out trades on Verified Investing that Users can opt into for free. Verified Investing verifies every trade with their real-time quote platform and compiles track records for the public to view. Total transparency. Any User who opts into a trade only rewards a Pro IF they get profitable information quickly. That's the way it should be!