Technically, the market looks terrible. Looking at the charts, the right shoulder is just about ready to dive off a cliff. However, we may see some buying today after a week of blood, but as for me, I will sit this one out on the buy side.
In my opinion we will see a lot of stocks retrace back to the area of support– now resistance, this will be the right time to short a few names.
The inverse ETFs are all looking great with signs of bottoming in the charts. Part of me just wants to load up on a few and call it a day, but I won’t–just yet.
I will use today’s strength to get out of a few names on the long side, and will raise my cash position significantly. By the looks of things, we have a big move coming, and it’s not up. It’s going to take some good news to get this market moving.
Trade accordingly.
Here’s a look at a few Inverse ETF charts: SMN, TZA, FXP, SRS, QID, DUG, FAZ, ERY, & BGZ.
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Bot some more BGZ this morning on the early bounce to add to my couple a week old BGZ position.
nice. I’m looking at FXP, QID, & SMN right here.
SMN is the best bet ragin, but look for a better entry point. Its a bit late, but investors business daily has an A rating on accumulation/distribution value. And the UYM is down to a C. Of course the charts look better for SMN as well. One more very important point. The Steel Dynamics upgrade was a pump and dump. There was institutional selling on it yesterday on the upswing. Same with Alcoa. I would be very surprised if Alcoa has good earnings, but you never know.
SIJ formed a real nice cup and handle and is off and running.
http://stockcharts.com/h-sc/ui?s=sij
agree I’ve been into BGZ and TZA since last week and been taking profits slowly on the way down plus adding more when supports are broken. I was looking to add ERY since low 21’s and FXP here , but being a bit weary as I can’t find a nice entry point. I am looking to add if we break support at SPX 873.
Nice play with TZA. it looks like a buy-the-dip kind of ETF. volume picking up.
SRS on fire!
obviously the market is going down. “another stimulous”
Biden says “was worse than we anticipated after he had previously called it as bad or worse than great depreccesion… so what is it now, worst since american revolution?
Shadowstats.com says real unemployment (based on how they would have previously calculated it) is north of 20%
I think SMN is obvious, QID and others.
and fundimentally SRS is going to do awesome since real estate is so dead. GGP BK is only the start… it’s actually so obvious that destruction of commercial real estate is coming it’s almost comical
shed’s gonna shit a brick
Don’t forget DUG and SSG 😉
Added to SMN at the close. Volume is higher on the up and volume on UYM is up on the down. The same with SKF and XLF. There will be shakeout days ahead, but I see the trend going down for now. I plan on buying on the dips on the inverse with stops. I think the last minutes of push was weak. Will know later tonight when I see the ACC/ DIST on IBD. Comes out around 7:30. Its set me up for a buy on SMN in afterhours @ 21.17.
Hope you got your buy point Ragin. I added more as it went down yesterday. Seems like they are day trading this, but volume has been higher on the upside. I will trade a few in and out as well. But I still think the market will correct .