Sunday, September 20, 2009

RUT, TNA & TZA


Above is a Weekly chart of Russell 2000 index showing a mighty Wave 4 rally that carried the index from 350 to 620, a gain of 77%. Below is a chart of TNA, the 3X leveraged ETF on the RUT, which shows a corresponding gain of 10 to 48, or about 380%:


If the RUT were trigger a SELL that carries it back to its March lows, or beyond, this next chart is one way to play the move:


TZA is the 3X leveraged RUT inverse ETF, it should match the above gains of TNA in the likelihood of that steep decline.

This RUT SELL SIGNAL on the Daily chart has not yet been triggered, but if and when it is, there may not be a lot of time to figure out how best to trade it.

File this one away, if and when it is needed.


A


PS: Here is a close up the the SELL triggers going into Monday:

6 comments:

Anonymous said...

Allan, what are the parameters you set for the BWT precision stop indicator on the Russell weekly chart? Looks like bigger stop range than the default, I assume to filter out smaller in-and-out trades. Thanks.

Allan said...

Volatility Stop
Multiplier 1.5
Num ATR 3
ATR Stop period 10
Sensitivity 1.4
Volatility Stop Avg 5

T said...

...Looking at TZA chart,I see the new moon energy aug.18 and full moon energy sept.3 both reversed down...but the next,most recent new moon energy sept. 17 looks to be reversing Up........for what its worth.

T said...

I dont know if this will work but heres my screenshot of RUT with notation....looks like I cant do it here...I'll email it to you .feel free to post it if you want.

Anonymous said...

What about SRS to play a potential downtrend in commercial RE?

Thomas said...

....Looking back at the older posts about 'the Priory'.... you wanted people to let you know if they were interested in further posts about the 'P'...I for one, would also be interested in any posts about that group or the views of the person you know.
Its kind of right up my alley. fits in with my odd perspective on the world.
Thomas