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Following up on my post last evening of the relative 'oversold' True Strength Index (TSI) indicator reading of yesterday's close, I made this purchase of Direxion Small Cap Bull 3X (TNA) at $64.95.
I will be the first to admit that an incredibly oversold TSI reading does not necessarily identify the absolute bottom of price movement. Often, it does nail the bottom. But when it does not, price will have bounced thereby causing the reading to rebound - then a swift drop in price ensues which makes a lower low that is not confirmed by a lower low TSI reading, thus creating the familiar 'positive divergence' BUY signal.
My TSI Trading record has been updated.
Well, the TSI dropped even further (to -0.81) after the market opened. So I bought more TNA at $63.80.