Wednesday, May 13, 2009

New ETF's and Market Status

Direxion has added some new 3x ETF's to their list. I am including two of them here: Mid Cap, and Technology, since they have enough volume to chart fairly well and are so important.

- SPY,
Broad Market Index:
(Daily Chart) Closed below up-trend line
- BGU/BGZ, Large Cap Sector:
(Daily Chart) Perilously close to breaking the up-trend line
- MWJ/MWN, Mid Cap Sector:
(Daily Chart) Up-trend thoroughly broken
- TNA/TZA, Small Cap Sector:
(Daily Chart) Up-trend thoroughly broken
- TYH/TYP, Technology Sector:
(Daily Chart) Up-trend thoroughly broken
- FAS/FAZ, Financial Sector:
(Daily Chart) Up-trend intact
- ERX/ERY, Energy Sector:
(Daily Chart) Up-trend intact

Tomorrow should provide more information.
Before "betting the farm" on a downtrend, I'd like to see all sectors in agreement (well... except possibly energy).

All of these sectors are inter-related. If Large Cap is tanking, those businesses should be doing precious little business with the others. Then (note to self) this places the Real Estate and Financial sectors at risk.

I am holding a small position in TZA, because I think I know which way it's going to go.

Does this help you?

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