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Breakout Multiplier

Banks and Bios

March 27, 2025

This post was originally for paid members only. It has since been unlocked for informational purposes and does not constitute financial advice.

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We are going to add some short exposure and have our eyes on small caps.

Rather than buy some Russell 2000 puts, we’re going to hit the two largest industry groups that comprise the index.

So we’re buying puts on biotechs and banks via XBI and KRE.

If these trades work, they should work quickly. If these are valid tops, then we will know soon. I think this is the perfect level to get short for both of them.

First up is KRE:

 

We’re looking at a tactical top and a series of lower highs and lower lows since last fall. 

This is exactly where we want to fade the banks.

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Breakout Multiplier

Picking Tops. Not Bottoms.

March 26, 2025

This post was originally for paid members only. It has since been unlocked for informational purposes and does not constitute financial advice.

If you're not a member, sign up here.

U.S. equities are facing a key confluence of resistance, putting buyers to the test.

Earlier this month, we bet on Homebuilders holding their ground within a potential topping pattern, but the bulls couldn’t get it done.

We already sold the double on our PHM calls, and now we want to take a shot at this group from the short side.

So, let’s flip the script and see if the bears can get it done now. 

This is a massive distribution pattern. If it completes...