Thanks to this crisis Iâm earning so much virtual money in our investopedia game (wacky), that brought me to the first page in the ranking.
I premise that in the game tonight I ordered 150 REW (ultrashort on tech stocks) and 150 SIJ (ultrashort on DOW) because the indexes have their own monthly EMA 400 lying way beneath the current values.
However, I noticed some dynamic supports on our favor: on our favor because I donât think that DOW reaching 7000 is any good for us, it would mean lot of people getting fired, etc.
I found the same hint on the S&P 500 and on the DOW, but on the DOW is hidden much better. The DOW remains the worst index though because even this dynamic support is in the 7000 zone.
Letâs say that we get a divergence on what the S&P and the Nasdaq tell us compared to what the Dow does: last time it was a divergence between the S&P compared to the Nasdaq and the DOW, because the S&P didnât have much room left before support (960.84) which held all day till 9 (Berlin time, 3 pm in the USA).
The dynamic support on Nasdaq and on the S&P 500 is right under todayâs candle, that is not the case of the DOW though.
In the real life Iâd wait a bit more before shorting if I found these support levels, whereas in the game I decided to be more aggressive and buy those ultrashort funds.
In the end I ask myself: could this be a huge bearish trap?
