I'm a little disappointed in bulls as they couldn't even make a fake breakout, so it's just a range day which means at the current stage, I don't expect huge down.
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The Fidelity day-traders use TQQQ (3x long QQQ) for longs,
and SQQQ (3x short QQQ) for hedges and/or shorts.
But they just use SPY for SPX longs. There isn’t heavy use of the juiced SPY ETFs.
None of that is new info.
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
1. Couple of interesting tidbits I'm watching. Note the odd structure of the VIX term structure. http://vixcentral.com/
It has essentially flipped and is in an "extreme" state at the front end of the curve (both Contango & Backwardization in the front months). I've seen this a few times, but never within a few percentage points from all time highs.
2. Relative out performance by the smalls over last few weeks. Smalls are heavily weighted around financials, which I think is interesting. Are we seeing early signs of sector rotation in anticipation of rate hikes down the road. Seems inconceivable but I'm hearing a lot of talk about it. If true it is possible the markets are preparing for a sustained sell off at some point just over the horizon, as big money will finally have an alternative source of returns. All speculation of course.
Last edited by Ratbastrd on Mon Sep 14, 2020 2:02 pm, edited 1 time in total.
Hard to say whether it's the range low here. The bottom line is no sharp pullback here until a new day high otherwise it could be a lower high trend reversal at least very hard to make a decision.
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This is what I meant: A strong bear signal bar, very hard to make decision here, good chances it's a lower high reversal if the next bar is another strong bear bar.
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The bulls' last hope is double bottom here. I see volume surge, so maybe, just maybe a rebound here first then we'll see.
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