IBB, UCO/USO update 06/07

IBB: biotech not feeling much love longer term. Why? It’s a sloppy overlapping advance (it’s all abc-waves, not clean and clear 1,2,3,4,5) within a big triangle, which may already have peaked. This will ultimately retrace the entire advance off the February 2016 low, plus some. For  now the lower trendline is holding, but when it stops doing that… look out below. Since these ugly overlapping price charts are very hard to interpret we may still see price move higher in a continued abc’s. Watch that trendline I’d say.

IBB

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UCO: Another overlapping mess. Good luck trying to count this one correctly. Here’s my interpretation. I’d still like to see a c-wave rally, but black wave-a in May 2016 may also have been a wave 4 and price is now in a 5th wave down. It’s right at trendline support If it breaks below then $12 is next and we may see a flat-correction with the next c-wave back up to $28. Or a long term long will have been struck. For now, the mess is what it is: a mess. Welcome to commodities…

UCO

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USO: Same story as above. Ugly chart. Period. Also here price is right at its last defense: trend line support. Please note that this triangle correction can keep on going for another set of abc waves up and down. There’s no rule that says it can’t. We’ll then have to continue to move the abc labels around until it all does fit and makes sense. For now, this looks as good as it gets.

UCO