* This is not investment advice, it is only meant to be a windown into my thought process.
I am current short TNA. I'm short TNA from 88$ /IWM from 84$. My targets are following IWM, I do not chart the leveraged ETF's, I chart the underlying.
My current target is for IWM to hit 76$. My stop has been brought down to $81.55 on IWM. 81.55 stop would now give me a minimum 14% gain on the trade.
Looking forward, IWM now LOOKS like it has the best position to hold it's ground here. IYR was very weak today and lost the 50 and appeared to lose it's long term trend. If I were to take a position for tomorrow, it would be short IYR.
On the S&P hourly charts, we burned off a lot of oversold. On the daily charts though, they just appear to be turning up. I believe this is a trick though. I think the daily will become more oversold after just a tad more for this bounce tomorrow.
I am still looking for the S&P to touch the 1265-1250 range before this correction or particuarly bear move is over and ready for a more severe bounce.
Here are the charts;
S&P hourly, showing we have burned off some oversold and are still underneath the bottom of the old channel. It has both that and the bottom of the bollingers there as resistance;
If you are short the market, that blue lie is probably key, we get significantly above that and we probably have a much stronger rally on our hands.
For the Daily, the stochs, MACD and RSI are just all turning up. However, as I said, I think this is a trick;
Moving on to IWM, this chart looks like it has the best chance to rally. But I already have a good profit on this trade, so will stick with it in case we break down here;
And finally.. IYR. IYR looked strong for awhile, but seems to have lost some reistance here. IYR might have some catch up to do;
Conclusion, we may bounce a bit more, but I think we have some more selling off to do and I think IYR may best the biggest mover to the downside.
GL
CJ
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