Highlighted in a weird camo color is the diETF to be purchased on Thursday’s open.
The soothing lavender (Fly’s favorite color) shows today’s purchase of SKF marked-to-market at the close. It came within 4 points of stopping out, but the candle formed a nice doji and volume dropped slightly. Although the BB entry has no RSI component, I like the RSI2 under 10. All in all, the entry looks promising.
QID also formed a little doji candle on decreasing volume and is hovering above support. I think the setup up is visually appealing. We’ll see how it works out.
Any ideas why the volume in QID has dropped off so dramatically? I wonder if it could be due to all the negative publicity these 2x levered ETFs have received.
As always, the 8% stop used in the spreadsheet is calculated using the close. The opening gap up/down often moves 2-4% from the previous close, and so it is imperative that the previous close only be used for position sizing purposes. The stop MUST be set on the actual entry. This means that positions will never be sized perfectly as one is setting the number of shares to buy using the previous close, not the open, unless there is the ability to adjust the number of shares to buy based on the pending gap up/down. Should QID gap up tomorrow, the system will be purchasing a larger position than planned.
Sounds good. Won’t surprise me if the market rolls over, again, tomorrow.
I’ve been buying FAZ over the last 2 days…I’m with you on this trade.
Not related, but funny regardless: http://www.theonion.com/content/news/recession_plagued_nation_demands (from June 08)
I’d guess that since the nasdaq has been the strongest sector throughout this bear market there are more profits to be had elsewhere on the short side.
That’s my guess on the declining avg. volume last 3-4 months.
i think volume is lower across the board, eye balling it in my tradestation charts it looks like it is lower for qqqq, spy, iwm, etc… not just the diETFs.
Any ideas why the volume in QID has dropped off so dramatically?
Uh, because it’s been a bad bet? I would bet against almost anything but the Qs right now. BTW, both charts when the MAs touched signaled the time to buy. QID isn’t even close. I know, lamo analysis, that’s why I’m scam basket and you are a pro ETF playa.
PS: If you had waited an hour for things to shake out on SKF this am like I suggested last nite you would have made more moolah. Just sayin…
wawaweewa, good point.
Born, I noticed something similar as you, but the QID still seems worse.
Thing is tech stocks are usually the last to go in bear markets. Historically, it’s been that way.
1920’s tech, 1937 tech, etc. is diff from tech today obviously but what’s relatively seen as “high tech” usually busts last for obvious reasons. People always have the most faith (and are sorta mesmerized) by the “high tech” of the day [era].
This bear market will be no diff.
When the Nasdaq breaks and equities like GooG and AAPl will be at sub 175 and sub 50 respectively that will be the true bottom of this market.
Health is also towards the back end when it comes to crashing but most health stocks have already taken a beating (will take some more). They broke down hard very recently too.
On other other hand techs still have to “crash”.
Shed, you’re my boy. You know it’s my dream to short the piss out of the naz.
amzn, aapl, and soon goog. or maybe more QID. Or them all. I don’t know, the point is, it’s gonna be great.
“I already got some” (a la The French Knights and their Holy Grail), thanks to Danny…but QID looks like a winner to me!
I would say that much of the 2X leverage volume has moved to the 3X ETF’s. Just look at what the stocktwits are trading. They are no longer trading SSO/SDS, QID/QLD, DXD/DDM anymore, they are going with BGU/BGZ and TNA/TZA.
Once the 10X ETF’s come out, the volume will probably all move to them. People are getting more and more greedy, and moving more and more to riskier securities.
You see it more and more in the worst traders, trying to make all their money in one huge trade, instead of one day and one trade at a time.
10x etfs?
hey, just borrow more and more money on greater and greater leveraged etfs until you get a win. Afterall, it’s the american way, isn’t it?
Nibble nibble skf at 50 day.