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Time To Hedge Longs

The hedging indicator at the top of the chart below generates crossover buy and sell signals to trade the triple leveraged ETFs TNA and TZA with a small portion of the portfolio as hedge against larger positions held in-line with the trend.

That hedging indicator signaled a negative cross at the close on Tuesday, signaling it was time to add some TZA to hedge long positions.

TZA should be held till the hedging indicator turns positive. For now, batten down the hatches on the long side.

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Kevin(click to enlarge)Click to enlarge

Disclosure: I am long TZA, MDY.