We are in a New Moon Trade (favors TZA). [ After eight days, this trade is DOWN 10.2% ]
Volume today for TZA was 2nd highest in the past 8 days.
$RVX (VIX for $RUT) open 7.3% higher and closed 1.9% lower.
TZA was down today and down in 11 of the past 12 days.
Ultimate Oscillator dropped from 34.5 to 31.5 while TZA fell slightly.
Bollinger Bands for $RVX (VIX for $RUT): the gap up touched the mid line and fell hard lower making a long red candle. Perhaps (not at all clear) that means $RVX will drop tomorrow, which would be bad for TZA.
Bollinger Bands for $RUT: $RUT gapped down, touched the 50 Day moving average, then recovered completely. Stayed midway between the top Bollinger band and the mid line. Looked like horizontal action. $RUT looks like it’s slowly falling from its peak, which seems good for TZA, a little.
http://www.americanbulls.com had TZA this morning as an unconfirmed buy. As I read it, the TZA buy signal was forcefully rejected today — pretty much needed a white candlestick after the opening gap up, and got the opposite of that. So, what appeared two days ago to be a TZA buy signal was actually a false alarm.
Overall, it looks like TZA is moving horizontally, neither up nor down.
True, perhaps hold a core long position then! Here is my take. Does this look like July? Yes, it does. But we have rallied 70% from the lows and the dollar euro action is unusual. Volume is also higher. So July and now look a little different to me. Also, as of yesterday we were below the zero line on the MACD which signals a trend change. Also, most of the worlds markets have formed a topping pattern and are starting to come down. Who knows though. So may people calling for a rally to 1250 and i am sure they know better than I do!
We sure could and for a while as well. But at some point we will go down. I would recommend to those of you who are good at trading (and I think you all are) to hold onto core short positions and trade the rest. I can't trade so I will sit here and wait.
Speaking of volatility, that's a really really ugly candle on the $VIX today. The Slow stoch says it needs to go up, but the MACD says we're not done going down. We could paint sideways.
Thank you Earl! Love your recaps.
TZA gapped up 4% and closed down 0.2% today.
We are in a New Moon Trade (favors TZA).
[ After eight days, this trade is DOWN 10.2% ]
Volume today for TZA was 2nd highest in the past 8 days.
$RVX (VIX for $RUT) open 7.3% higher and closed 1.9% lower.
TZA was down today and down in 11 of the past 12 days.
Ultimate Oscillator dropped from 34.5 to 31.5 while TZA fell slightly.
Bollinger Bands for $RVX (VIX for $RUT): the gap up touched the mid line and fell hard lower making a long red candle. Perhaps (not at all clear) that means $RVX will drop tomorrow, which would be bad for TZA.
Bollinger Bands for $RUT: $RUT gapped down, touched the 50 Day moving average, then recovered completely. Stayed midway between the top Bollinger band and the mid line. Looked like horizontal action. $RUT looks like it’s slowly falling from its peak, which seems good for TZA, a little.
http://www.americanbulls.com had TZA this morning as an unconfirmed buy. As I read it, the TZA buy signal was forcefully rejected today — pretty much needed a white candlestick after the opening gap up, and got the opposite of that. So, what appeared two days ago to be a TZA buy signal was actually a false alarm.
Overall, it looks like TZA is moving horizontally, neither up nor down.
If we are headed down, it could still take a while to form a topping pattern. I just pray we don't go sideways for the next 2 years!
True, perhaps hold a core long position then! Here is my take. Does this look like July? Yes, it does. But we have rallied 70% from the lows and the dollar euro action is unusual. Volume is also higher. So July and now look a little different to me. Also, as of yesterday we were below the zero line on the MACD which signals a trend change. Also, most of the worlds markets have formed a topping pattern and are starting to come down. Who knows though. So may people calling for a rally to 1250 and i am sure they know better than I do!
Dreadwin,
I never knew what the news was. I read this at Carl's site:
sold one unit at 1096.00 – lighten up prior to news
and the market moved, so I figured whatever news he was worried about must have happened. I was going to see what it was and never got around to it.
He has been getting clobbered by news lately, getting leery I guess.
Alternatively, we're consolidating / painting a bull flag. JNK was strongly up today.
What was the news item that has been blamed for the early selling?
It's pretty rare that Carl holds overnight, and I'm surprised that he took a loss.
We sure could and for a while as well. But at some point we will go down. I would recommend to those of you who are good at trading (and I think you all are) to hold onto core short positions and trade the rest. I can't trade so I will sit here and wait.
Carl at days end:
Estimated /ES range: 1086-1100 (14 point range)
Actual /ES range: 1084.50-1102.75 (18.25 point range)
Today was a bit wilder (lower low, higher high & larger range) than Carl expected.
Carl's trading:
Carl went long yesterday one unit /ES at 1095.50 & one unit at 1101.50
Carl sold /ES today for 1096 & 1097.50 (loss of 3.5)
Grade D (hurt by news flow, again, but aren't we all)
Speaking of volatility, that's a really really ugly candle on the $VIX today. The Slow stoch says it needs to go up, but the MACD says we're not done going down. We could paint sideways.