Monday, September 15, 2014

I'm going to have pull the trigger on these. Anyone want to lend me money? I still have med-school loans to pay off.

Semiconductors: SOXS
I mentioned approximately a week ago that I was keen on SOXS but did not yet feel good enough to fully recommend it as a "buy." Well, the time has arrived. Looking at its bullish sister fund SOXL a really good looking double top seems to be in place. The Rabbit Hole has been using semi-conductor indexes and stocks as a barometer of the market for a long time and with a high degree of accuracy. Long term I think this is a great buy but still speculative at this point with the EMA's below the MA on the daily chart.

SOXL: Direxion Daily Semiconductor Bull 3X. The line at $122 is showing the double top.
SOXS: Direxion Daily Semiconductor Bear 3X. Still speculative but a breakout appears imminent.

Treasuries: TMV
I showed the treasury bear chart TMV a little while back but made the incorrect prediction that it would retrace at the EMA(13) or (34). Instead it blasted through both EMA's and now has taken up residence at the upper limit of the channel. Before the EMA(13) crosses over the EMA(34) I think some retracement will happen here, albeit very minor, before continuing on. It's bullish sister fund TMF is actually what is guiding my long term buy, because short term TMF has also come up to the lower limit of it's support in a pattern eerily reminiscent of ERX a few weeks back.The patterns are identical between the two, it's just that ERX is further forward than TMF. TMV is a strong long term buy.

TMV: Direxion Daily 20+ Treasury Bull 3X.
TMF: Direxion Daily 20+ Treasury Bear 3X.

Jakob Richardson © 2014