Why:
1)This one is way oversold.
2)The indicators are at extremes not seen for a long time.
3)Bought April $6 call for $5.75, the premium was only 9 cents.
I feel this is a good play because I believe the market ( AMEX:SPY & SP:SPX ) to be in a correction phase of up to around 10% from its most recent weekly peak. I like the idea of AMEX:SPXS bear shares, not only because it behaves the opposite of SP:SPX , but because it's triple leveraged and you can buy for cheap!
From a technical viewpoint I see the...
If you follow my charts, you know I have targets for 4750 & 4900 for sp500 futures all have been confirmed w/ the AD showing Ascending Triangles to those targets. And the AD has also confirmed $475 & $493 for AMEX:SPY etf. I encourage bullish traders to bull all dips.
Another Tale is the Bear Flag Trade in AMEX:SPXS that has been repeating for quite sometime....
the 3x bear etf , has a bearish waterfall set up w/ a close below $14.80.. Thats 10 cents from current price action of 14.90, think about that for a second.. sp500 goes parabolic if the bears gives this up . If you're bullish, you want to see this capitulate
1st target 17.35, 2nd 19.12 based on the bullish abcd pattern set up.. 1st target is above the .382 fib level for the 1st abcd pattern set up . It also correlates to the sp500 futures min retrace to 4160
there is also a rising wedge into a trend line resistances. The B leg of the previous bearish cypher acted as inital bounce area, as a result I see a future spy rally set up into the close today. This can also push $spy for $400+ $4080 SPX
adding this morning as I anticipate sp500 futures along w/ spy to sell off the rest of this week. im looking for B leg retrace on the bullish cypher near the .382 fib level
Shorting the SPX with SPXS (x3 leverage). Eyeing $21usd+ for first take profit and then let it ride from there. I believe we could go up to $35usd +
SL: $17.02
the AD is showing a bullish cypher set up on the weekly chart of spxs, however we're not at the apex of the triangle yet (bottom chart) we're close... this week we have Fed chairman speaking and few other key speakers... could be the right opportunity im waiting for . I also dont mine DCA into a position since this has been beaten down pretty badly already...
There be no bears here - only bulls!
TIP: Using a stochastic with settings of 5 for %K and 5 for %D you can get an idea when prices are bowing into the dance.
When bears become dominate, inverse ETFs become profitable.
SPXS:
Entry (Stop-Limit) - 20.45
Stop Loss - 18.85
First target - 21.36 (+4.6%)
Anticipated target - 23.57 (+15.27)
Direxion Daily S&P 500 Bear 3x Shares forms bullish "Head and Shoulders Bottom" chart pattern
"Head and Shoulders Bottom" chart pattern formed on Direxion Daily S&P 500 Bear 3x Shares (SPXS:NYSE). This bullish signal indicates that the stock price may rise from the close of $18.31 to the range of $20.50 - $21.00. The pattern formed over 20 days which is roughly...
