If you ping the charts links in the OP, you should see the “inside day” candlesticks forming. In Japanese candlesticks we call this look a “harami” where the open and close are currently “inside” the body of the preceding candlestick formed last week. This is also called “pregnant lady” and by end of week, should the candlesticks for the three indices here still show “inside days” or “haramis” it would suggest (the operative word here, “suggest”) that a change in sentiment would be coming the following week.
Let’s see how this plays out. More sideways “basing?” Break to the downside?
Patience is key.
Meanwhile, I am making good gains today with my short ETFs: $DRV $LABD and $SQQQ. I am using these as hedges against stuff that I have nibbled on and I’m slowly adding to on the long side of things.
Note: I am also holding an equal amount of $LABU, the long inverese of $LABD. It is easier to “pull off” one trade once a new decisive move breaks out or breaks down on either or.
$LABD daily chart (Biotech 3x) showing a breakout from a 3 week old down trendline today:
$LABD weekly chart shows the push off from a horizontal support in that $25 region
$DRV daily chart (Real Estate short 3x)trading above the 50 and 200 EMAs but I want to see it do the same with the 20 EMA. I hope to see all EMAs bend upward. Trading inside this triangle is for the fleet of finger. THIS IS NOT AN INVESTMENT VEHICLE BUT A TRADING VEHICLE TO SCALP GAINS AND THEN BUY SHARES IN RELIABLE DIVIDEN PAYERS, SIX OF WHICH I HOLD AND ADD TO WEEKLY FROM SUCCESSFUL TRADES IN VOLATILE SYMBOLS SUCH AS THE THREE SHORTS HERE.
$DRV weekly chart walking up short-lived trendline and if we get above horizontal resistance on this chart, I’ll add more. On the flip side, I am ready to pull off this trade on any break down through this trendline:
$SQQQ daily chart shows the 200 EMA and its 3.5 month old trendline tested last Friday and held while the bullish crossover (20 x 50 EMAs) which started in April is still intact. Again, this is only for traders adept at moving quickly. THIS IS NOT A LONG TERM BUY AND HOLD as the underlying futures contracts suffer decay as they roll over. Hold onto a 3x type symbol and you will die a death from 1,000 cigarettes’ burns.
$SQQQ weekly chart walking up the bottom trendline of that steep UP channel. Any breakdown of that bottom trendline - even intraday, especially intraday, and I jump out. Not how that horizontal support is still intact. YOU MUST BE ABLE TO MULTI-TASK IN DIFFERENT TIME FRAMES TO BE ADEPT AT TRADING THESE 3X VEHICLES SUCCESSFULLY. YOU CAN’T BELIEVE YOU CAN TAKE YOUR EYES OFF THE ROAD WITH AUTOPILOT ENGAGED.