Updates for Thursday September 26, 2024

Click here for Signal Trades spreadsheet.

Updates 1:55 AM ET - Thursday
Upcoming key events
Powell will be giving opening remarks via pre-recorded video at the 2024 U.S. Treasury Market Conference Thursday morning.  This is unlikely to move the market, but nevertheless...

Volatility continues to drop
VIX VVIX charts are dropping on all time frames.  UVXY (which is based on VIX futures) rose to tag its 200 EMA on Wednesday as seen in its 30-minute chart below.  We consider this rise "the pause that refreshes" rather than the start of seriously rising volatility. In other words, UVXY should drop by Thursday and continues to be supportive of equity.

However, monitor UVXY 200 EMA green line.  If it goes sideway for multiple days, then UVXY is basing to really rise.

NQ
NQ 15-minute chart below shows all of its EMA lines steadily rising.  This up trend should continue until NQ forms a multi-top formation.  NQ should reach 20600 by Friday.

SOXL
SOXL 15-minute chart below shows all of its EMA lines rising as well.  ​This up trend should continue until SOXL forms a multi-top formation.  SOXL should reach 39 by Friday.

On Thursday, if SOXL dips one more time to 36 or close to its 200 EMA green line on its 15-minute chart, then it's a low-risk setup to enter SOXL for 10% gain.  

TZA
TZA 15-minute chart shows its 200 EMA green line flat and in sideway formation for three days. Its 20 EMA blue line has crossed above and rose up from this flat 200 EMA green line setup.  Observe how similar this setup is to early September.  This setup is typically a high probability for more selling in IWM TNA RTY.  

On Thursday, if TZA dips one more time to 13.7 or close to its 200 EMA green line on its 15-minute chart, then it's a low-risk setup to enter TZA for 10% gain.  

Our personal trade plan
In light of the strong possibility of NQ SOXL TNA having a decent partial recovery by December, we are not going to sell our SOXL positions just yet.  We will most likely sell them when SOXL reaches our breakeven price of 46.5.  Still this is subject to change.

We have prepared buy orders to enter TZA.  Click here for Signal Trades spreadsheet.
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Disclaimer
The information presented here is our own personal opinion. Consider it as food for thought.  We are not offering financial advice. We are not promoting any financial products. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections.  You are proceeding at your own risk if you follow our trades.