Comments on: Stock Market & Commodity Analysis 7-8-22

By: ghetto2000

ghetto2000 — Tue, 12 Jul 2022 00:44:03 +0000

In reply to rsotc. thank you!!

By: rsotc

rsotc — Mon, 11 Jul 2022 13:12:30 +0000

In reply to ghetto2000.

It’s been a nice run off the recent lows on XBI but I think the easy pickin’s have already been picked off that trade. What I mean by that is the move off the mid-June lows was pretty much uni-directional (up) except of the brief pullback in late June.

Unidirectional moves are when leveraged ETFs shine & often do better than the 2x or 3x leverage (compared to the sector or 1x ETF). Great for LABU but going forward, I suspect that the biotechs might start to grind around a bit more which could lead to decay & relatively under performance (i.e.- less that 300%) for LABU. See my explanation as to why in the FAQ page located under Resources on the top menu of the site. (FAQ: Is there a disadvantage of holding a leveraged ETF for an extended period of time) https://rightsideofthechart.com/frequently-asked-questions/

While there might be some more meat on the bone for the biotechs (personally, I prefer to stand aside that one for now), my preference would be XBI over LABU at this time for the above reasons.

By: rsotc

rsotc — Mon, 11 Jul 2022 13:04:22 +0000

In reply to Trent.

One of the deciding factors is that the Wilder’s RSI (which I generally prefer on stocks, ETFs, etc..) is available along with the traditional RSI on the TC2000 charting platform (which is my primary platform for charting stocks & ETFs) but not available on the platform that I trade & chart futures, so that makes it an easy decision for me. Both seem to work fine for the applications that I use each for & I general use the standard RSI on the 120-minute down to 5-minute charts of futures as I tend to more actively swing & day trade those vs. longer-term swing & trend trades on stocks & ETFs. Here’s an explanation of the difference between the two: https://help.tc2000.com/m/69404/l/747071-rsi-wilder-s-rsi

By: ghetto2000

ghetto2000 — Sat, 09 Jul 2022 18:00:01 +0000

Hi Randy, any interest in trading XBI? It’s been the best bull bounce since last month via LABU (3x bull leveraged).

By: Trent

Trent — Sat, 09 Jul 2022 00:48:05 +0000

Hi Randy …. there are a number of frustrations i find in trying to learn and adopt your tech analysis techniques …. one of which is your interchanging use between Wilders RSI and the standard RSI. I notice that on some assets you use the Wilders RSI … such as SBSW, SOYB, USO, QQQ but then i notice that you use RSI for CL, NG, NQ etc. There have been several times i have missed a divergence that you had identified as i was looking at the RSI, but you were using the Wilders at that moment. can you please spend some time explaining when and how you (and we) should be applying the use of the RSI and Wilders RSI. As i have noticed numerous times that one may show a divergence when the other does not. Is it as simple as Wilders RSI for Equities/ETF’s and RSI for Futures? or is there another science behind your decision on which to use?

Thankyou …Trent