Updates 2:00 PM EST - Monday 9/21/20 Short-term: bearish Market is still in condition #4 "Strong bearish headwinds for stocks".
Monitor for upward reversals in these $VIX $VXN zones. These are low-risk setups to re-enter UVXY and SQQQ. Updates 9:53 AM EST - Monday 9/21/20 Bearishness is accelerating
Updates 9:31 AM EST - Monday 9/21/20 Just a quick swing up, then likely a bigger drop We just want to clarify that we expect $SPX $NDX IWM to do a quick up swing and then they are likely to drop again to lower levels in their down channels. This is because we expect $VIX $VXN to anchor in the zones described below and then rise up to resume the highly bearish condition. Please review the condition #4 "Strong bearish headwinds for stocks" in the table below. That's where $VIX $VXN are heading. Updates 9:20 AM EST - Monday 9/21/20 $VIX $VXN anchoring to rise Pre-market $VIX data tells us that $VIX is forming the "anchor to rise". It anchored at its 200-hour EMA on Friday 9/18, and it gapped up during the early hours of today. This morning we are monitoring for:
$VIX $VXN need to drop down and anchor a bit more before they will take off. But $VIX $VXN are basically transitioning to go back to condition #4 "Strong bearish headwinds for stocks". Click here for current Signal Trades. Disclaimer The information presented here is our own personal opinion. It is intended to supplement your own research and trading systems. Consider it as food for thought. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections. While we offer scenarios for you to consider in your trade planning, know that you are proceeding at your own risk if you follow our suggestions. Note that we trade highly risky 3x leveraged ETFs. You may end up losing a lot of money with them. They suit our portfolio, but they may not be appropriate for you. Please read more about them before trading them. Proshares UltraPro and UltraPro Short ETFs Direxion Leveraged and Inverse ETFs Why 3x ETFs like TQQQ lose money over the long term The risks of investing in inverse ETFs Simple explanations of contango and backwardation
9 Comments
Dev
9/21/2020 08:40:25 am
Hi Ann good call to short. How low do you think TQQQ will go?
Reply
Ann
9/21/2020 11:02:33 am
Hi Dev. Thank you for your feedback. How low TQQQ will go depends on the time frame you trade in. We'll discuss in tonight's analysis more.
Reply
Andres
9/21/2020 08:44:53 am
Hi, are expecting SQQQ to drop to $27.45 today or next few days?
Reply
Ann
9/21/2020 10:38:58 am
Hi Andre. Yes, we are. See our latest Signal Trades
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Ann
9/21/2020 10:41:25 am
Hi Andre. We expect SQQQ to drop $27.45 today
Reply
Kim
9/21/2020 01:52:49 pm
Just this one comment alone helped me decide to get out and wait to buy back in cheaper. thx!
Ann
9/21/2020 04:28:59 pm
Hi Kim. Glad to help! Good luck
MBBT
9/21/2020 12:53:52 pm
That hasn't ended very bearish. HAs something changed?
Reply
Ann
9/21/2020 04:30:48 pm
Hi MBBT. Conditions are still bearish under the hood, but stocks may choose to ignore the bearish messages for a short while. More later tonight.
Reply
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