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George Simone's  Instablog

George Simone
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I'm a long-time Market Participant who has criss-crossed the Market for more years than I care to remember, and a few years ago I got hooked on studying and trading ETFs, especially the leveraged kind. Charts, good charts are an absolute necessity in this field, so the Linchpin of my ETF... More
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ETF Advantage Report
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ETF Advantage Report
  • Finally A Breather.

    While Wall-Street had itself a bit of a selling squall last Friday, both of these fear-gauges [VIX] and [XLP:XLY] indicated that it was nothing more but a much needed pullback by a top-heavy and much overbought market.

    For as long as these two indicators remain poised to the downside at this stage of the game, any near-term pullbacks have to be considered part of a consolidation process and buying opportunities.

    (click to enlarge)

    (click to enlarge)

    Even though the S&P 500 benchmark index posted its best monthly gain last Friday, Wall-Street ended lower on the day as reports showed that U.S. economic growth slowed more sharply than anticipated for the fourth quarter. On top of that, business activity in the U.S. Midwest dropped to its lowest level in five years.

    This was enough to get the overextended and top-heavy major indexes to keel over in a much needed pullback. While the major indexes showed major gains in recent weeks, upside momentum had become iffy lately and that put the kibosh on this rally.

    After a lousy performance all trough last December and January, the market made up for lost time this February. But things are beginning to look a bit toppy as the DOW and S&P 500 benchmark indexes have risen too fast and too far above their respective Moving Average configurations which will remain bullish, for as long as the respective green lines stay below the red lines as reflected by this [RSP] benchmark index.

    (click to enlarge)

    Note that this index [RSP] received only a bit of a haircut and like the whole market remains overextended. This means that the market has to come down some more before finding renewed traction to the upside. While the RSI strength indicator of this index remains well situated inside its bullish territory, the MA lines configuration [green line below the red line] is still somewhat overblown, which means that this market continues to be overbought and a bit top-heavy.

    Meanwhile, the MACD momentum bars have faded to dead-neutral on the demarcation line, indicating that this market is floating without momentum, up or down.

    Still, some savvy market strategists see the major indexes poised to extent their excellent February performances as far out as the eye can see. But these strategists seem to be in agreement that this six-year bull-run is getting to be expensive while corporate earnings growth is slowing down. A poor combination for an ongoing bull-market.

    But then again, the equity markets remain the most attractive of all the investment alternatives out there and for as long as that is the case, stick with the stock market.

    To put things in context, for as long as the MA lines configurations and MACD momentum bars stay positive, any pullbacks by the major indexes are buying opportunities.

    Note that this weekly bull-index [SPXL] continues to be well entrenched to the upside as it has been for the last six years. Its MA lines configuration remains bullish [green line beneath the red] and the MACD momentum bars are moving back on top of the demarcation line, while the RSI strength indicator remains solid in its bullish territory.

    All of this shows that the market is in a consolidation mode and getting ready for higher highs.

    (click to enlarge)

    The weekly bear index [SPXS] continues to dig a deeper hole for the bear to hibernate in and so presents no danger to the market. The RSI strength indicator continues to be negative for the bear and so is its MA lines configuration [green line above the red] all while the MACD momentum bars are at dead neutral on the demarcation line.

    What all of this means is that there are no near-term threats to the market from the bear, only a bull who is short of breadth and in need of a pullback and some consolidation.

    (click to enlarge)

    The European and Asian markets [EFA] have also rallied too far too fast and need to pull back to consolidate before advancing further. The MA lines configuration of this index shows a large gap between the green line below the red, indicating that this market is way overbought, top-heavy and ready to keel over.

    While the RSI strength indicator remains strongly bullish, upside momentum is fading and that is bearish for this market.

    (click to enlarge)

    This market forecasting junk-bond canary [JNK] continues to be "irrationally exuberant" and that can present a danger to the market. While this overly-bullish little bird keeps soaring higher, the underlying MA lines configuration is overextended with a large gap beneath the green line below the red. This indicates that JNK is extremely overbought, top-heavy and ready to take a steep nosedive which could take the market along with it. That the RSI strength indicator has reached bubble territory doesn't help matters either. Meanwhile, the MACD momentum bars have faded to dead-neutral which means that upside momentum has stalled, which of course is bearish for the market.

    But what if this canary is right?

    (click to enlarge)

    The insiders in this game [KNOW] where pushing this index too high too fast and now have to take a haircut and return to reality.

    But they are still bullish on the market, and rightly so. The MA lines configuration remains bullish [green line beneath the red] the RSI strength indicator is solid in its bullish territory and even though the MACD momentum bars are fading, this index remains solid in its bullish territory.

    (click to enlarge)

    This index [TRAN] shows the state of the economy as a whole. The more things have to be transported, the greater the economic activity. Recent reports show that the U.S. economy has been slowing down somewhat, and this chart shows why.

    Not only has this index taken a nosedive, so have the RSI strength indicator and the MACD momentum bars. But that the MA lines configuration shows signs of turning bullish with the green line slipping below the red line is a sign that this slowdown is only temporary and will soon pick up again.

    (click to enlarge)

    Cyclical small-cap companies [SML] are one of the main drivers in an economic expansion and consequently a stock market's advance. This is well reflected by this SML chart. But even here, this index went up too far too fast and so this sector is now paying the price.

    But with its MA lines configuration bullish [green line below the red] and the RSI strength indicator solid in bullish territory, small-caps will lead the market higher again, once they have found renewed traction to the upside.

    That the MACD momentum bars are sitting neutral on the demarcation line is a sign that the market is taking a well-deserved breather before continuing its march to the upside.

    (click to enlarge)

    When it comes to spurting too high too fast, the NASDAQ [NDX] left most other indexes behind. Now with its MA lines configuration a bit too wide a bullish gap between the green line below the red and its RSI strength indicator touching bubble territory, NASDAQ is top-heavy and needs to come down some more before finding renewed traction to the upside.

    Meanwhile, the MACD momentum bars are turning neutral on top of the demarcation line, indicating that the push for the up or downside is fading, and so the market just keeps floating in either direction.

    (click to enlarge)

    The commodity market [DBC] appears to be bottoming and is at an inflection point. The green and red MA lines have merged and are now totally neutral. If the green line manages to stay below the red line, commodities could rally. But if the red line stays below the green line, commodities will probably anchor to the bottom.

    Meanwhile, the RSI strength indicator is just beginning to lift off its dividing line in favor of the bulls, and so are the MACD momentum bars beginning to rise above the demarcation line, which is also bullish. Although it is still too early to tell, it feels like the bulls are getting ready to fire up the commodity sectors.

    (click to enlarge)

    Just like the commodity sector as a whole, [GOLD] is also at an inflection point. If the green MA line stays below the red line, gold could rally. But if the green line stays above the red line, gold will probably tank some more.

    With the RSI strength indicator in bearish territory, and ditto for the MACD momentum bars, the bears are still in control of the gold price - for now.

    (click to enlarge)

    The MA lines configuration for oil [MTIC] has turned totally neutral which means that oil is at a tipping point. With the RSI strength indicator and MACD momentum bars also totally neutral, that point can tip either way. So the next few trading sessions for oil could become interesting.

    (click to enlarge)

    In case the market tips your way, here are some favored ETFs that could come in handy.

    ETF sectors:

    Consumer discretionary, technology, telecom, biotech, healthcare and materials;

    Leveraged Bull ETFs:

    Mid-Caps 3x (NYSEARCA:MIDU), Retail 3x (NYSEARCA:RETL), Biotech 2x (NASDAQ:BIB), Healthcare 3x (NYSEARCA:CURE), Semis 3x (NYSEARCA:SOXL), China 3x (NYSEARCA:YINN), NASDAQ 2x (NASDAQ:TQQQ), Real Estate 3x (NYSEARCA:DRN), Technology 3x (NYSEARCA:TECL), India 2x (NYSEARCA:INDL), S&P 500, 3x (NYSEARCA:SPXL), DOW 3x (NYSEARCA:UDOW), Russell 2000, 3x (NYSEARCA:URTY), Small-Caps 3x (NYSEARCA:TNA), S&P 500, 2x (NYSEARCA:SPUU);

    None-leveraged long ETFs:

    China (NYSEARCA:PEK), Biotech (NYSEARCA:XBI), India (NYSEARCA:INCO), Pharma (NYSEARCA:XPH), Semis (NYSEARCA:PSI), Cyber Security (NYSEARCA:HACK), Retail (NYSEARCA:RTH), Japan (NYSEARCA:HEWJ), Health-Care (NYSEARCA:XHS), ditto (NYSEARCA:RYH), Germany (NASDAQ:DXGE), Philippines (NYSEARCA:EPHE), NASDAQ (NASDAQ:QQQ), Technology (NYSEARCA:RYT), Info-Tech (RYT), Russell (NYSEARCA:IWY), Con. Discretionary (NYSEARCA:FXD), Home-Construction (NYSEARCA:ITB), Materials (NYSEARCA:RTM);

    Leveraged Bear ETFs:

    Crude 2x (NYSEARCA:DTO), Nat-Gas 2x (NYSEARCA:KOLD), Energy 3x (NYSEARCA:ERY), Oil & Gas 2x (NYSEARCA:DUG), Financials 2x (NYSEARCA:SKF), S&P 500 2x (NYSEARCA:SDS), DOW 2x (NYSEARCA:DXD), Russell 2000, 2x (NYSEARCA:TWM), Real Estate 2x (NYSEARCA:SRS), NASDAQ 2x (NYSEARCA:QID), Small-Caps 3x (NYSEARCA:TZA), Biotech 2x (NASDAQ:BIS), Semis 3x (NYSEARCA:SOXS), China 3x (NYSEARCA:YANG);

    Non-Leveraged Short ETFs:

    Oil (NYSEARCA:DNO), Emerging Markets (NYSEARCA:EUM), EAFE (NYSEARCA:EFZ), Active Bear (NYSEARCA:HDGE), Russell 2000 (NYSEARCA:RWM), DOW (NYSEARCA:DOG), S&P 500 (NYSEARCA:SH), Financials (NYSEARCA:SEF), Mid-Caps (NYSEARCA:MYY), Real-Estate (NYSEARCA:REK), NASDAQ (NYSEARCA:PSQ);

    GOOD LUCK!

    Mar 02 9:54 AM | Link | Comment!
  • Free Sailing For The Bulls?

    Last Friday, the DOW was down triple digits in the red during early trade, only to run up triple digits in the black by the close. So much for the supposedly calmer markets.

    Wall Street had slipped in previous sessions when it appeared that the members at the Fed couldn't't agree on a plan for when and by how much or if at all they ought to raise interest rates. After all, that's the key for the economy and the market's direction in the months or even years ahead. It appears that the Fed members are inclined to keep rates lower longer. As they see it, the economy is still fragile and that means the Fed hasn't got much lee-way to take a chance on raising rates.

    Also, market participants were wondering what adverse impact the ongoing Greek debt-fiasco will have on the market going forward. But now, getting a four-month break due to the Greek loan extension beyond the February 28 deadline, investors can again concentrate on the Fed, interest rates and the effect the upcoming Euro-QE might have on the markets next month.

    The global markets appear to be on a solid footing as they follow Wall Street up to higher highs in response to an improving global economy.

    So all in all and after surviving some wild swings during its consolidation period from late December to last week's Thursday, the market appears to have broken out during last Friday's trade and seems to be in pretty good shape for the shape it's in.

    Check this benchmark [SPX] chart which is as bullish as bullish can get. The only concern is this index which keeps soaring too high too fast and shows signs of "irrational exuberance." A pullback here and a bit of consolidating would be much appreciated by some market participants.

    The RSI strength indicator is solid in its bullish territory, the MACD momentum signal bars are demonstrating strength on top of the demarcation line, and the Moving-Average lines configuration has turned decidedly bullish with the green line below the red.

    (click to enlarge)

    When you check this weekly [SPXL] bull-chart, you'll notice that this long-term [?] bull-run continues unabated as it has for the last six years, or so. Sure, it had a few hiccups over the last couple of months, but only enough to bring this bull back to some solid traction.

    During that time the MACD momentum bars showed fading upside momentum, but are now becoming positive again. The RSI strength indicator remains solid in its bullish territory, all of which has the bull set to resume its charge to higher highs.

    (click to enlarge)

    It appears that this bear [SPXS] has gone back into hibernation again and keeps digging a deeper hole at the bottom of a deep pit. The MA lines configuration is totally bearish with the green line above the red, the RSI strength indicator appears to be stuck deep in its bearish territory and ditto for the MACD momentum bars. All in all, a gloomy picture for the bears in this game.

    (click to enlarge)

    Check this [EFA] chart and note that this index has an exposure to a broad range of companies in the markets of Europe, Australia, Asia and the Far East. Just like Wall-Street, these markets seem to be afflicted by an over-exuberance that is driving related indexes into nose-bleed territories.

    The large gap between the green below the red line of its MA configuration shows that the EFA markets are top-heavy, overbought and ready to keel over. The RSI strength indicator is close to blowing bubbles and the MACD momentum bars are sharply bullish on top of the demarcation line. So, while the EFA needs to pull back a bit and consolidate, the oversees markets in this circle are ready for take-off, and just waiting for this consolidation to get it over with.

    (click to enlarge)

    The market forecasting junk-bond canary [JNK] just doesn't want to quit overdoing it. It's components are way up there in nosebleed territory, which means that the bleeding of the market could start at anytime, and that would be a good thing.

    It would set the indexes down at a level where the market could catch its breadth and get ready to rally some more toward higher highs. But for now, notice that the MACD momentum bars of this JNK index have been fading and that makes any rally at this time suspect.

    (click to enlarge)

    The anti-fear index [XIV] is flexing its muscles in this market and the only thing still "iffy" for this bull-run to shift into higher gear is this index's bearish MA lines configuration [green line above the red] which has turned into a caution signal for this market.

    (click to enlarge)

    The NASDAQ market [NDX] also appears to be overbought and ready for a pullback. While this index has shot up too far too fast, its RSI strength indicator is ready to enter bubble-territory, and the MACD momentum bars show "irrational exuberance" on top of the demarcation line.

    Surprisingly enough, the MA lines configuration [green line below the red] has it just right, bullish enough for a continued rally, but not too bullish to spark a serious selloff.

    (click to enlarge)

    Although the commodity market [CRB] is trying hard to lift off the bottom, but as long as MA lines configuration remains bearish, [green line above the red] it will have a tough time doing so.

    But while its RSI strength indicator is sitting at dead neutral, the MACD momentum bars are exceedingly bullish on top of the demarcation line.

    This could indicate that the CRB is taking the first step to a sustainable rally.

    (click to enlarge)

    After being irrationally bullish last month and blowing this fat MA lines bubble [large gap between the green line below the red,] the yellow metal [GOLD] has since deflated and could go into a consolidation mode. But with its RSI strength indicator and MACD momentum index so extremely bearish, more downside for gold has to be expected.

    But for a long as the MA lines configuration remains bullish with the green line staying below the red line, gold will have a chance to rally again.

    (click to enlarge)

    One of the reasons that the price of gold came under such intense selling pressure was the steep rally in the greenback [UUP] last month. But this month the U.S. dollar has been consolidating while being strongly supported by its MA lines configuration. The large gap between the green line below the red indicates that the greenback has been overbought, and is poised for a pullback. This is why the MACD momentum bars have faded deep into bearish territory and the RSI remains mainly neutral.

    (click to enlarge)

    The price of oil [WTIC] remains under pressure by its bearish MA lines configuration [green line above the red.] But for as long as its MACD momentum bars remain bullish and stay above the demarcation line, oil will have a chance to keep building a base. That the RSI strength indicator is remaining neutral, gives oil an opportunity to consolidate and build an upside bias. But for now it's still a mixed bag.

    (click to enlarge)

    All in all, it appears that the bulls have the wind at their backs and free sailing along the way.

    So here are some favored ETFs to sail along with.

    Leveraged Bull ETFs:

    India 3x (NYSEARCA:INDL), Healthcare 3x ((NYSEARCA:CURE), Technology 3x (NYSEARCA:TECL), NASDAQ 3x (NASDAQ:TQQQ), Semis 3x (NYSEARCA:SOXL), Biotech 2x (NASDAQ:BIB), Semis 2x (NYSEARCA:USD), Real Estate 3x (NYSEARCA:DRN), Financials 3x (NYSEARCA:FAS), S&P 500 3x (NYSEARCA:UPRO), NASDAQ 2x (NYSEARCA:QLD), DOW 30, 3x (NYSEARCA:UDOW); Mid-Caps 3x (NYSEARCA:MIDU);

    Non-Leveraged Long ETFs:

    Biotech (NYSEARCA:XBI), Technology (NYSEARCA:IYW), Info-Tech (NYSEARCA:VGT), China (NYSEARCA:FXI), Discretionary (XKY), Semis (NYSEARCA:SMH). NASDAQ (NASDAQ:QQQ), Transports (NYSEARCA:XTN), Health-Care (NYSEARCA:XLV), Japan (NYSEARCA:HEWJ), Semis (SMH), NASDAQ (NASDAQ:QTEC), MSCI (NYSEARCA:EFA), Alerian (NYSEARCA:AMU), Mid-Caps (NYSEARCA:IWP);

    Leveraged Bear ETFs:

    Oil 3x (NYSEARCA:DWTI), NASDAQ 2x (NASDAQ:BIS), Financials 3x (NYSEARCA:FAZ), Oil&Gas 2x (NYSEARCA:DUG), Energy 3x (NYSEARCA:ERY), Emerging Markets 3x (NYSEARCA:EDZ), Materials 2x (NYSEARCA:SMN), Nat-Gas 2x (NYSEARCA:KOLD), Mid Caps 2x (NYSEARCA:MZZ), DOW 30, 2x (NYSEARCA:DXD), S&P 500, 2x (NYSEARCA:SDS), Russell 2000, 2x (NYSEARCA:SRTY), Semis 3x (NYSEARCA:SOXS), Mid-Caps 3x (NYSEARCA:MIDZ);

    Non-Leveraged Short ETFs:

    Emerging Markets (NYSEARCA:EUM), Russell 2000 (NYSEARCA:RWM), Active Bear (NYSEARCA:HDGE), DOW 30, (NYSEARCA:DOG), S&P 500 (NYSEARCA:SH), NASDAQ (NYSEARCA:PSQ), Oil (NYSEARCA:DNO), Mid-Caps (NYSEARCA:MYY), Oil & Gas (NYSEARCA:DDG);

    GOOD LUCK!

    Feb 23 11:37 PM | Link | Comment!
  • Is The Canary Overdoing It?

    Last week's blog suggested to sell the farm and buy the market instead.

    Until that time and ever since last December the markets have been highly volatile and whipsawing with sharp spikes in either direction. Yet, until last week's close the major indexes remained flat for the year. Wall Street had stalled in response to U.S. stock-piles that are sitting at record highs for oil, suggesting that global economies are stalling as well. Add to this the geopolitical and civil war fiascoes in Ukraine and the dire debt situation in Greece, and the market could be excused for not going anywhere fast, at least until last week.

    Now it is one thing for the market to be trading flat, but it is something else when these trades are interspersed with intensely volatile daily swings. This makes investors feel like throwing dice in Vegas, instead of investing in Wall Street.

    But then the market forecasting junk-bond canary [JNK] perked up which prompted this blog's call

    to sell the farm and buy the market.

    This JNK index has proven its uncanny ability to sense which way the market headed. So it is no surprise that since last week the benchmark S&P 500 large cap index reached an all-time high, the Russell Small-Cap index hit a record and the NASDAQ stands at a 15 yea high.

    Yet, the JNK index shows no signs of letting up and that doesn't make sense, because after a run like this the market needs to pull back a bit and consolidate. But then again, the market does what the market does and never mind if it makes sense or not.

    When you check the JNK chart you'll notice that while this index keeps on soaring, its underlying Moving Average configuration is forming too wide a bullish gap with the green line below the red line. This suggests that the market is getting to be overbought, top-heavy and in danger of keeling over. A similar situation exists at the top of this chart where the RSI strength indicator is poised to enter bubble territory.

    But the MACD momentum index leaves no doubt that this market's direction is "up and away." But note that while the direction signal bars remain on top of the demarcation line they appear to be getting shorter. This suggests that upside momentum is waning, so watch it.

    (click to enlarge)

    It is about time that this anti-fear index [XIV] is lifting off the bottom and gives some upside support to the market. But its MA lines configuration remains extremely bearish [large gap between the green line above the red] while the RSI strength indicator is sitting on dead neutral. So where is the strength here? Meanwhile the MACD momentum bars managed to rise on top of the demarcation line, and that's bullish.

    All in all, these two indicators reflect a market that is still somewhat suffering from a split personality. Yet, there is no hint of investors' "irrational exuberance" and that bodes well for the bulls in the months ahead.

    (click to enlarge)

    This benchmark index [RSP] has rallied sharply since early February and it has done so in face of a bearish MA lines configuration when the green line was still above the red line. This now appears to be changing in the bull's favor, as the MA lines configuration is turning positive with the green line sliding below the red line.

    It is still a bit too early to tell, but if the green line stays below the red it will confirm that this market has entered a new phase of its six-year bull-run. (click to enlarge)

    Check this weekly bull-chart [SPXL] and note that nothing has changed during its six-year romp from the lower left of its chart to the upper right. But from the beginning of last December things began to look a bit dicey as this index started to consolidate with a downward slant.

    While the RSI strength indicator regained its moxie which pulled this bull-index back up again, the MACD momentum bars still hover below the demarcation line. This suggests that there is still plenty of bearishness left in this game and that is a good thing. It means that the market can internally consolidate a bit more, before these bars rise above this line and put the market into higher gear.

    (click to enlarge)

    Consolidating for most of this year, this bear [SPXS] had its chance to charge this bull in a serious way. But now this chance is gone as this index keeps digging itself deeper into a deep hole at the bottom of a deep pit.

    The MA lines configuration has turned negative with the red line sliding below the green line, the RSI strength indicator keeps sliding deeper into bearish territory and so are the MACD momentum bars. Yep, there is nothing bullish about this bear.

    (click to enlarge)

    A quick reminder that one of most potent tools in a trader's arsenal is this [XLP: XLY] indicator. When it declines the market rallies and vice-versa.

    This chart tells the story.

    (click to enlarge)

    This NASDAQ index [NDX] is scary - too high too fast and ready to keel over. Now that would be a good thing and put this index back onto some solid traction to higher highs.

    Note that while the RSI strength indicator and MACD momentum bars have risen sharply into their respective bullish territories, the MA lines configuration remains totally neutral, which mean that there is weakness in this index somewhere.

    (click to enlarge)

    Sure enough, it is the Tech sector [XLK] which is a major component of NASDAQ and could upset the apple cart. While this index has also soared too high too fast, the RSI and MACD indexes are closing in on bubble territory which could prove to become bearish for tech. Meanwhile, the MA lines configuration is still a bit negative [green line above the red.]

    Although there is no doubt that the MA configuration for the tech sector will soon turn bullish, but for now caution is called for.

    (click to enlarge)

    Besides tech, the energy sector [XLE] is another important component for NASDAQ. At long last and after a steady downdraft since last June, this index is now in a rally mode. Although its MA lines configuration has turned tentatively positive, it is still a bit too soon to call it a victory for the bulls, but it sure is looking good.

    The MACD momentum index along with the RSI strength indicator are solid in their respective bullish territories and may become a bit overheated. But at this stage of the game that's OK, and may give energy the boost needed to get a decent rally going.

    (click to enlarge)

    The commodity market [GTX] is beginning to look interesting. After a deep and prolonged nosedive since last July, this index managed to work its way out of the deep hole it's been in. While this snapback still could be nothing more but a dead-cat's bounce, the strong performances of the MACD momentum index and RSI strength indicator are impressive.

    So maybe, just maybe the commodity market has stepped on a comeback trail.

    (click to enlarge)

    As the experts have it, it are the cyclical sectors like industrials, manufacturing and mining that put the muscle behind the economy and consequently the markets. If that holds true, then we're at a new phase to the upside as projected by this [FCL] cyclical index chart.

    After consolidating for three months, this index has broken out decisively to the upside, well supported by a bullish MA lines configuration [green line below the red.] The MACD momentum bars along with the RSI strength indicator are also lending support by rising sharply into their respective bullish territories.

    (click to enlarge)

    [GOLD] had itself a pretty steep nosedive during recent trading sessions, and that my turn out to be a good thing for the yellow metal. When it soared way to fast and way to high during the middle of last January, it left big hole behind to fall back into.

    With both the MACD momentum index and the RSI strength indicator in their respective bearish territories, there may be more downside ahead.

    Although the MA lines configuration for gold [large gap between the green line below the red] still reflects a heavily overbought condition which is bearish for gold, it also shows that there is a base building effort in progress and that is bullish.

    (click to enlarge)

    Trying at long last to break lose off the bottom, oil [WTIC] is well supported in its effort by the strongly bullish [MACD] momentum index and the moderately positive RSI strength indicator. But unless the MA lines configuration finally turns bullish with the green line below the red, the price of oil won't have a chance to advance in any meaningful way.

    (click to enlarge)

    Small-Caps [SML] are the torque that provides the thrust without which no market advance can be sustained. Check the small-cap chart and its leveraged cousin the Mid-Caps [UMDD] and note that after a long consolidation period which started last November, both these indexes are now in a strong uptrend and well supported by the same bullish index configurations.

    That augurs well for Wall Street and if you're a bull in this game, that's as good as it gets.

    (click to enlarge)

    (click to enlarge)

    Here are some favored ETFs in case the market comes your way.

    ETF sectors:

    Consumer Discretionary, Health-Care, Technology, Materials, Energy, Industrials, Financials;

    Leveraged Bull ETFs:

    NASDAQ 2x (NYSEARCA:QLD), DOW 30, 2x (NYSEARCA:DDM), Jr. Gold Miners 3x (NYSEARCA:JNUG), S&P 500, 3x (NYSEARCA:UPRO), Financials 3x (NYSEARCA:FAS), Regional Banking 2x (NYSEARCA:KRU), Energy 3x (NYSEARCA:ERX), Biotech 2x (BIBZ0, Russell 2000, 3x (NYSEARCA:URTY), Small-Caps 3x (NYSEARCA:TNA), Mid-Caps 3x (NYSEARCA:UMDD), Semis 3x (NYSEARCA:SOXL), India 3x (NYSEARCA:INDL), Health-Care 2x (NYSEARCA:RXL), Emerging Markets 2x (NYSEARCA:EET).

    Non-Leveraged Long ETFs:

    Mid-Caps (NYSEARCA:IWP), NASDAQ (NASDAQ:QQQ), Discretionary (NYSEARCA:XLY), Oil Services (NYSEARCA:OIH), Biotech (NYSEARCA:XBI), S&P 500 (NYSEARCA:IVV), Home Construction (NYSEARCA:ITB), Small-Caps (NYSEARCA:RZG), Materials (NYSEARCA:XLB), Energy (NYSEARCA:XLE), Semis (NASDAQ:SOXX), Russell 2000 (NASDAQ:VTWO), Transports (NYSEARCA:XTN), Financials (NYSEARCA:IYF), Health Care (NYSEARCA:PTH),

    Leveraged Bear ETFs:

    Mid-Caps 3x (NYSEARCA:MIDZ), Semis 3x (NYSEARCA:SOXS), Oil 2x (NYSEARCA:SCO), Technology 3x (NYSEARCA:TECS), Small-Caps 3x (NYSEARCA:TZA), Energy 2x (NYSEARCA:DUG), Financials 3x (NYSEARCA:FAZ), Base Metals 2x (NYSEARCA:SMN), Industrials 2x (NYSEARCA:SIJ).

    Non-Leveraged Short ETFs:

    Oil (NYSEARCA:DNO), Russell 200, (NYSEARCA:RWM), Financials (NYSEARCA:SEF), Equity Bear (NYSEARCA:HDGE), S&P 500 (NYSEARCA:SH), Small-Caps (NYSEARCA:SBB), DOW 30, (NYSEARCA:DOG), Oil & Gas (NYSEARCA:DDG);

    GOOD LUCK!

    .

    Feb 16 4:13 AM | Link | Comment!
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