Tuesday, August 3, 2010

BUY TZA - $30.30

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(TZA) is a 3X ETF trade that will profit if the stock market goes down.
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This is another attempt on my part to capture a small profit from what appears to be a workable positive momentum divergence.  
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Now I've never mentioned this before, but this is as good a time as any.  And perhaps the observant TSI readers have already figured this out, but the ZERO line is where a lot of price movement will bounce.  Which is to say, though this trade is very near the ZERO crossover, it is very possible that the indicator will reach ZERO, then head south with price. In that case, I lose.
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Click on the chart to ENLARGE
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TZA SOLD @ $30.65.  The indicators made what I call "A Leaning Tower of Pisa" on me and I decided to take my ball and go home.
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What often happens in these cases, and I see price is now much higher, it that price does go higher and it creates a negative divergence with respect to the indicator.  THEN you gotta sell or get clobbered.
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My TSI trading record has been updated.
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Click on the chart to ENLARGE

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