BIS Proshares Ultra Short Biotechnology

The IBB is the most parabolic sector in the market and since I see a correction coming soon, I have been looking for a way to play a portion of the market short. The first chart is the BIS you can see the insane volume thrust on Friday. It is over its 10dma and I will own it above every close over the 10dma, with an emergency stop of 13.49 (just under the previous low by 2 cents) On the weekly chart you can see BIS is very extended to the downside below its 10wma and had a monster volume spike. Short term this should bounce up and come close to testing the 10wma.The first chart of the IBB you can see that the IBB has tested its 10wma on average once every 4-6 weeks it is way extended from the 10wma and should come back and test it ~ at 250, before continuing higher or maybe even breaking down in an effile tower pattern like we can see on the bottom chart. On the monthly time frame IBB is very extended!I am in no way trying to call a top here, I am only saying we are due for a pullback and am positioned to take advantage of that fact.

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