Looking at the CHINA Direxion 3xs bear etf: symbol YANG. We show the move to be in a confirmed uptrend as noted by CCI(30). Even though today was down, the CCI(5) moved back above the 100 line from an oversold position. Also note the Bullish (Doji) Star Pattern from today which indicates the downward energy is dissipating, The megaphone upward move suggest a recovery to challenge the 1st wave highs.
The price of oil has made and impressive 30% ramp off the bottom in the month of October. The oil short etf SCO on the weekly chart has now moved under 2 on the daily RSI(2) trade indicator. Historically, we can expect this trade to reverse sharply and outperform over the next week or more. Stocks move in 5s and 0s time frames; expect SCO to hold $40 and move higher. A severe drop in oil will also most likely indicate a top in the broader DOW and S&P indexes for some time to come.
Gold miners etf NUGT is showing multiple signs of exhaustion. Notice today we have a bearish Harami: The Bearish Harami Pattern is a sign of a disparity. “Harami” is an old Japanese word for “pregnant”. The long white candlestick is “the mother” and the small candlestick is “the baby”. This shows the bulls’ upward drive has weakened and now a trend reversal is possible. False breakouts are common patterns; notice the false break in July. CCI (30) indicates an extreme deviation from the standard moving pattern. Short below the upper black line, expect the miners to fall back into the defined trend range.
No comments:
Post a Comment