Sagar
Putting trailing stop in existing long positions, if not to try a Headwind short?

Why not using Short Call Vertical? Out of the money calls are having less volatility than at the money ones; so you will sell the more expensive ones and buy the cheaper ones to limit risk. You might consider that.
 
The Healthcare sector is the weakest today (and is down while the market/SPY made a new all-time high).
 
The Biotech industry is the weakest one in the Healthcare sector.
 
XBI has displayed the Bearish Headwind signal.


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Sagar
Today I closed the XBI bearish position with a nice profit. Here is how I took the trade and exited it.

1) I shared the Headwind reversal (at the very top!) short setup on 26th Dec. The Headwind setup (which is a combination of signals, the Headwind signal being one of them) based on the checklist was confirmed on that day.

2) Today, I had a significant profit in the position - more than the risk taken in the trade. I explained in the last market roundup what instrument I used. The video is on my YouTube channel (TradingProfitably). I exited the position using an intraday Fine Tune chart. My position was expiring in another eleven days (10th Jan 2020 expiry), and I decided to book the profit without waiting.

If XBI continues to be weak, then the Headwind reversal setup will be followed by a Go With Flow trend-following short setup. It may also give a Box double-top short setup if it can recover to the Watermark pivot created by the Headwind signal and reverses from there. You may keep an eye for those setups (or run scans for them on your stock-universe list!).


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Sagar
Here is a chart showing the other reason (apart from a nice profit and only eleven more days remaining till expiry) I decided to close the XBI position.

A) In the weekly chart, it is coming close to the Watermark resistance that it broke out of earlier. That resistance "may" now act as support. If that happens, the bearish position using options will erode profit fast. I preferred to book my profit instead of taking that risk.

x 2 2019-12-30_15-04-35.jpg 
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