I hope you don't mind the questions but does breaking synergy (based on the higher close today) mean that a longer term top is no longer clear and that after we retest containment we could go even higher?
TZA opened up 0.4%. Gap was filled. TZA was up 1.0% at the high, and closed down 3.6%.
We are in a New Moon Trade, which favors TZA. Following AmericanBulls guidelines, this trade sold TZA at the open at $7.05. After six days, this trade is down 4.1%, and in cash.
Volume for TZA was nearly as high as yesterday, which was the highest of the last 29 days.
$RVX (VIX for $RUT) closed down 3.6% with TZA down 3.6%. No divergence.
TZA has now been down 4 of the last 8 days — chop.
The low for TZA today was $6.79, the lowest TZA price since the origin of the written word. Bad for TZA.
Ultimate Oscillator for TZA bottomed at 20 twenty one trading days ago and has generally risen since then but has remained below 50 and is currently 33. Indicating continued weakness for TZA. Two days ago was highest of the last 22 days, but a 9 point drop in these last two days crushed that definite up trend. Bad for TZA.
Bollinger Bands for $RVX (VIX for $RUT): today’s black candle fell to the bottom of the congestion area and below the Bollinger mid-line (20 day MA). MACD has crossed from below and looks flat. Looks like $RVX will be falling. Bad for TZA.
Bollinger Bands for $RUT: The large white candle for $RUT pushed up towards the top Bollinger band. Looks like what I thought was a topping process for $RUT may have been a fake top, as today’s candle made a new (on the 3month chart) high, and looks like the beginning of another rally. MACD was getting ready to cross down, but now seems to be rising again. Bad for TZA.
Bollinger Bands for $RUT:$RVX ($RUT vs VIX for $RUT): today’s white candle rose above the congestion area. The upper Bollinger Band seems to be falling. Looks like what had looked like a topping process was more of a coiling. Bad for TZA.
TZA had a much lower high, lower low and lower close – bad for TZA.
Money flow for the Total Stock Market was $528 million flowing into the market on an up day.
I will post the AmericanBulls candlestick interpretation a bit later.
$TRAN not confirming the new high. $DJUSRE not confirming the new high. TNA is up over 10% since Monday's open. Probably time for $RUT to take a breather and retrace. TZA never seems to put in a V shaped bottom, so you will likely have another chance to pick it up this low.
I hope you don't mind the questions but does breaking synergy (based on the higher close today) mean that a longer term top is no longer clear and that after we retest containment we could go even higher?
And the 10th anniversary of the dot com bust! Unfortunately though, I don't think the operators are as smart as you!
The Daily view from Americanbulls
TNA has a confirmed BUY signal today. The candlestick today was a White Candlestick (normal buying pressure).
AmericanBulls’ buy price was $55.69 (opening price).
TZA has a confirmed SELL signal today. The candlestick today was a Black Candlestick (normal selling pressure).
AmericanBulls sell price was $7.05 (opening price). While the most recent TZA buy was in place, TZA went from $7.12 to $7.05, down 1%.
Summary of $RUT based ETFs:
Confirmed BUY: IWM (1x), UWM (2x), TNA (3x)
Confirmed SELL: RWM (-1x), TWM (-2x), TZA (-3x)
Action for tomorrow: none
Red, you are a great writer. Thanks for cheering me up!
TZA opened up 0.4%. Gap was filled. TZA was up 1.0% at the high, and closed down 3.6%.
We are in a New Moon Trade, which favors TZA.
Following AmericanBulls guidelines, this trade sold TZA at the open at $7.05.
After six days, this trade is down 4.1%, and in cash.
Volume for TZA was nearly as high as yesterday, which was the highest of the last 29 days.
$RVX (VIX for $RUT) closed down 3.6% with TZA down 3.6%. No divergence.
TZA has now been down 4 of the last 8 days — chop.
The low for TZA today was $6.79, the lowest TZA price since the origin of the written word. Bad for TZA.
Ultimate Oscillator for TZA bottomed at 20 twenty one trading days ago and has generally risen since then but has remained below 50 and is currently 33. Indicating continued weakness for TZA. Two days ago was highest of the last 22 days, but a 9 point drop in these last two days crushed that definite up trend. Bad for TZA.
Bollinger Bands for $RVX (VIX for $RUT): today’s black candle fell to the bottom of the congestion area and below the Bollinger mid-line (20 day MA). MACD has crossed from below and looks flat. Looks like $RVX will be falling. Bad for TZA.
Bollinger Bands for $RUT: The large white candle for $RUT pushed up towards the top Bollinger band. Looks like what I thought was a topping process for $RUT may have been a fake top, as today’s candle made a new (on the 3month chart) high, and looks like the beginning of another rally. MACD was getting ready to cross down, but now seems to be rising again. Bad for TZA.
Bollinger Bands for $RUT:$RVX ($RUT vs VIX for $RUT): today’s white candle rose above the congestion area. The upper Bollinger Band seems to be falling. Looks like what had looked like a topping process was more of a coiling. Bad for TZA.
TZA had a much lower high, lower low and lower close – bad for TZA.
Money flow for the Total Stock Market was $528 million flowing into the market on an up day.
I will post the AmericanBulls candlestick interpretation a bit later.
Overall, it looks like TZA will fall tomorrow.
$TRAN not confirming the new high. $DJUSRE not confirming the new high. TNA is up over 10% since Monday's open. Probably time for $RUT to take a breather and retrace. TZA never seems to put in a V shaped bottom, so you will likely have another chance to pick it up this low.
There will be some sort of new home sales number tomorrow morning. Might be important for DRV.
Me to Dread.
Carl seems to be holding over night. I have TNA and not sure whether to hold overnight or not.
Well, if we don't turn around in the next couple of days, I will be liquidated as well.