Correction coming? See inverses UVXY TZA SQQQ
- Thread starter KCalhoun
- Start date
I was going to post last week Ken. I thought maybe you were a bit early on the UVXY. My date was the week of the 19th, but I went ahead and bought today seeing the Naz soar. A couple dollars difference won't make a big difference if the bear party really starts anyway..
I know a couple perma-bears that always hold inverse ETFs as a moderate-sized hedge. They made a literal fortune scaling out during Covid. I see nothing with wrong holding inverse funds, which goes against what 'experts' say. As long as it's risk capital that you can afford to lose, it's fine. The upside potential is massive, especially right now.
Tomorrow and next week should be big for the Nasdaq. We may be entering blow-off top territory.
The Fed can play all the games they want, but remember - when it gets bad, they come in to save the day AFTER the fact.
The news this week has been pretty bullish in nature and today's move was not an ordinary bounce it reflected on some fundamental reasons new money came in. The chances of a meaningful correction the rest of 2021 took a fairly big hit this morning.
We still have that looming Dec 5th timeline on the debt ceiling hanging over the market.
Plenty of fake crisis for traders to worry about I guess. I'm too busy making money to care, Tell you what if it becomes a problem I'll take some of my profits now and short stuff on the event.
Fake crisis? Not with Turtle and Schumer/Pelosi in play. A menage a troi' of financial disaster.
A REAL crisis is also if Canada gets a nationwide blight on maple trees and they all die. That should send the stock of whomever sells Aunt Jemimah and Log Cabin syrups through the roof.
Bouncing off the daily trendline a few days ago is what’s giving us the boost. It was also a 50% pullback. Now we need to clear the the highs of the previous weeks, and it depends how price action does it. If it’s like today again, not good for the bulls. Although I do agree that with it being closer to the end of the year, Santa rally, etc, a correction may be delayed…
I’m not a bear btw, just play the price action. We’re at an important level right now. And I don’t mind holding onto some inverses considering the current price they’re at.
And if we do happen to break that daily trendline, we’re likely going down pretty hard and fast for a good 1000-1500 points if I remember correctly. I don’t have the charts pulled up at the moment.
Then depending on how scary the reason is that the news gives us, we’ll see how far it goes from there.
Somehow the TSX was up 1% today and we reached pre-Covid employment levels last week. Funny we never have debt ceiling crisis here. We also seem to raise interest rates quicker and run lower deficits without our market crashing but hey Americans love a good fake crisis.
Fundamentals say otherwise. I only use longer term technicals as a reference point. I've actually had a better track record calling corrections on here then most bears which is ironic. Basically I can't see a 1000-1500 point drop in an environment with 6% GDP growth and strong corporate earnings, without a massive negative fundamental catalyst either real or perceived.
Roughly speaking these kind of tight ranges or wedges can go in both directions. What I find is a lot of short side traders never acknowledge the upside potential until it's far too late. Like late October 2020, when I was picking out underpriced TSX energy firms wondering why volumes were tiny and revisiting March 2020 lows was still a talking point for some.