The divergence you are referring to might be a sign that TNA is in the last wave of this move up. If it continues to play out, the divergences will get pretty apparent.
Looking at $RUT, I see either 3 waves up (this would be the 3rd) or 5 waves up (this would be 5). It would make sense if this is the 5th wave and apparent divergences show up. I'm not an EW guy by any means, though.
I also expect TNA to go up. Watch closely to see if IWM/$RUT respect the upper BB (they should). I think there will be a tradeable move coming soon.
Today was day one of the Full Moon Trade, which favors TNA. After one day, this trade is up 5.3%. (Not up 6.3% as the buy was not at the closing price.)
Volume today for TNA was a bit higher than normal for these past 11 days.
$RVX (VIX for $RUT) closed 2.8% lower, favoring TNA.
TNA has been up 12 of the past 14 days.
Ultimate Oscillator for TNA peaked at 78 six trading days ago and has generally fallen since then but has remained above 50 and is currently 68. Indicating continued strength for TNA.
However, TNA today closed 5% higher than that day with the peak Ultimate Oscillator value. A higher close with a lower Ultimate Oscillator value might be seen as negative divergence indicating that TNA is due to fall.
Bollinger Bands for $RVX (VIX for $RUT): today’s red candle moved closed to the lower Bollinger band, but that lower band dropped today, indicating that $RVX could continue to drop tomorrow, favorable for TNA.
Bollinger Bands for $RUT: $RUT rose to near the upper Bollinger Band, but that upper band rose today, indicating that $RUT could rise again tomorrow, favoring TNA.
http://www.americanbulls.com had TNA as a BUY on Feb 9th, and a possible sell today if TNA had dropped. With the big gain in TNA today, TNA remains a hold for tomorrow.
Overall, it looks like TNA broke out above an area of congestion and is likely to continue rising tomorrow.
From my previous charts, one lesson learned is that both $RVX and $RUT tend to respect the BB's. Since you're only 1% down on TZA, you have the luxury of patience.
The divergence you are referring to might be a sign that TNA is in the last wave of this move up. If it continues to play out, the divergences will get pretty apparent.
Looking at $RUT, I see either 3 waves up (this would be the 3rd) or 5 waves up (this would be 5). It would make sense if this is the 5th wave and apparent divergences show up. I'm not an EW guy by any means, though.
I also expect TNA to go up. Watch closely to see if IWM/$RUT respect the upper BB (they should). I think there will be a tradeable move coming soon.
TNA gapped up and closed up 6.3%.
Today was day one of the Full Moon Trade, which favors TNA.
After one day, this trade is up 5.3%. (Not up 6.3% as the buy was not at the closing price.)
Volume today for TNA was a bit higher than normal for these past 11 days.
$RVX (VIX for $RUT) closed 2.8% lower, favoring TNA.
TNA has been up 12 of the past 14 days.
Ultimate Oscillator for TNA peaked at 78 six trading days ago and has generally fallen since then but has remained above 50 and is currently 68. Indicating continued strength for TNA.
However, TNA today closed 5% higher than that day with the peak Ultimate Oscillator value. A higher close with a lower Ultimate Oscillator value might be seen as negative divergence indicating that TNA is due to fall.
Bollinger Bands for $RVX (VIX for $RUT): today’s red candle moved closed to the lower Bollinger band, but that lower band dropped today, indicating that $RVX could continue to drop tomorrow, favorable for TNA.
Bollinger Bands for $RUT: $RUT rose to near the upper Bollinger Band, but that upper band rose today, indicating that $RUT could rise again tomorrow, favoring TNA.
http://www.americanbulls.com had TNA as a BUY on Feb 9th, and a possible sell today if TNA had dropped. With the big gain in TNA today, TNA remains a hold for tomorrow.
Overall, it looks like TNA broke out above an area of congestion and is likely to continue rising tomorrow.
Carl at days end:
1103-1116 Todays estimate range for /ES
1004.25-1115.50 Todays actual range
Today stayed in Carls range, but within a point or so.
Carl owns one unit of /ES at 1098.50 since last Friday
It's up 16 at the moment.
All in all a good day for Carl. Grade: A
update 4:01
Operators closed IWM right on the red line in the above chart, to the penny @ 64.24.
Daily algos are net neutral with the close, an opening above 64.24 will trigger a whole new round of buying
I just sent you an email.
That's the one 🙂
This graphic might be more appropriate then:
http://outdoors.webshots.com/photo/263648601001…
Dreadwin,
I'm not exactly down 1%.
I was underwater at the time when I sold my TZA a week ago. Now I have much of it back 43 cents cheaper.
I lost track of my cost basis. If anything, I have the luxury of being nervous 🙂
Also:
http://www.icanhasmotivation.com/patient-bear-w…
From my previous charts, one lesson learned is that both $RVX and $RUT tend to respect the BB's. Since you're only 1% down on TZA, you have the luxury of patience.
http://www.icanhasmotivation.com/patient-bear-w…