Correct, typo. Thx for point that out.

Thank you!

def. agree. Still looking for profit to come in… at this point just hitting the BE points on my layered shorts. Need some good continuation legs down to make the trade pay what it should.

Yes I do but the shorter the time frame you are looking at, the closer the leveraged SOXS will (inversely) mirror the charts of SOXX (i.e.- positive divergence = negative divergence). In other words, the decay is minimal in the very short term but gets worse over time so better to use SOXX vs. SOXS if analyzing the weekly charts

Sure.Someone asked for my thoughts on nat gas yesterday & here is my reply with chart (nothing’s changed although /NG did go on to break out above the downtrend line (buy signal #1) & is currently backtesting it. https://rightsideofthechart.com/correlations-between-stocks-bondscurrencies-gold-4-3-23/#comment-27067

I have a tricky question to ask and wanted to know your thoughts.

Attached Chart is 4 hour TF for SOXS. As you can see there is a bullish divergence forming in PPO and RSI.

Do you think the divergence works in the leveraged etfs that has time decay?

Thanks!

Same levels from the recent trade ideas video (click on the MKTX ticker “tag” at the bottom of this post as that will load all post covering the stock in reverse chronological order). 335.89 was/is the first target so best to cover a little above that, maybe a hair below 336, as a reaction is likely on the initial tag of that first target.

However, I still think the stock market is a potential powered keg waiting to explode (or more accurately, implode) so if the market breaks soon, MKTX & the other short trades could simply blow right by the next targets. If so, the 2nd target on MKTX is still ~291. Chart below.

No no no… Never high-five a trade until it’s closed with profits booked. ;-)

I was (and technically, still am) a little early on this $NDX swing short and could still end up being wrong. If/when QQQ hits 294.20 (one of the initial longer-term swing targets for the next leg down), maybe a little shout out but for now, still some more work to be done, especially a solid break & daily close back down below 312 on QQQ. Also, still waiting to see those negative divergences on the QQQ daily ‘confirmed’ with a bearish PPO crossover as well as a solid break below the 60m uptrend line off the late Dec lows in SOXX, which it is currently testing from above as I type.

I second that motion!

Thank you!

Nice chart, thx for sharing

Forgot chart…

XLU has just rallied into downtrend line resistance with the PPO testing the zero line from below so most likely at least a tradable pullback here but personally, I don’t care to trade the steady-eddy dividend paying utility stocks since you need to beta-adjust up the position sizes to the point where they start to eat up too much buying power (margin) in your account so better fish to fry IMO.

Wanted to share one of my favorite chart on the Daily time frame to see most probable direction for riskier assets such as semis and tech sectors.

XLK/XLP has made PPO crossover with bearish divergence on both PPO and RSI..