If we are to have runaway inflation, would not oil be consolidating for a sustained push higher?
Looking at the chart of the oil market proxy, The United States Oil Fund LP ETF (NYSEARCA:USO), we see that inflation is nowhere to be found.
Chart by StockCharts
In fact, just like the iShares Russell 2000 ETF (NYSEARCA:IWM), the USO is showing a rising wedge termination that is now proceeding lower.
Our premise is and remains that we are experiencing a significant across-the-board trend change.
The position that has been established in the Direxion Russell 2000 Bear 3X ETF (NYSEARCA:TZA) is action taken in response to the analysis that the next sustained major move is lower.
Even so, anything can happen in the market. A good stop location for the position in TZA, would be in the 13.56 area (this week's low).
Disclosure: The author is long TZA.