SSG: This is short the Semiconductor sector. You can see that price has made a swooping bottom and has started up. The red line projecting from the last price bar to the first target price is at the same slope most of the other "up" moves this ETF has made. You can also see on the bottom indicator that this is very oversold and has just moved up through a level that says we should expect an up move now. The first target is based from the last previous resistance level. The red line just beneath the price is our stop level. If price ever closes below this line we will absolutely and completely sell. The stop is 8.5% away. The first target price is at $32.71 which would be a 20% gain. This gives us a risk to reward of 2.3:1 which is enough to take a position. We need to be right less than half the time in order to at least break even.
DXD: This is an ETF that shorts the Dow. This looks similar to SSG in the fact it appears to have put in a bottom. The indicator below has also turned up and gave us a buy signal. We bought at $39.40 which is only 3% from our stop level and 13% to our first target. This gives us an excellent risk to reward ratio of 4:1.
QID: This is an ETF that shorts the Nasdaq. We bought at $27.25 with a stop level at $25.80 and first target of $31.50. This gives us a risk to reward of 3:1. Again, if price closes below our stop we will absolutely sell the position.
I expect our first targets to be hit within two weeks time based upon the slope that previous advances have taken. This would be in the neighborhood of 15% return on these positions in that period of time.
May the force be with us!
No comments:
Post a Comment