Tuesday, September 23, 2014

Shits n'Giggles: ERY, DWTI, BRZS, YANG, TMV and EDZ

Several of my previous calls are setting up nicely for the long term. Those will be reviewed and some new ones will be added.

Emerging Markets Bear: EDZ, YANG, BRZS
We recently had a cross of the EMA(13) over the EMA(34) with the MA(144) fast approaching on EDZ's chart. Emerging markets are facing some of the same problems as the U.S. Federal Reserve, namely, what is to be done regarding interest rates. Still a speculative buy at this point with a pullback possible since it has come into contact with a resistance line, but the next time the Slow STO (5) is below 30%, I'd buy. The three year view of EDZ is a nice-looking three tier declining fan with a breakout of the first fan appearing imminent.

EDZ: Emerging Markets 3X Bear, Three Year View
EDZ: Emerging Markets 3X Bear Seven Month View
In the same vein as EDZ, YANG and BRZS also represent emerging markets (China and Brazil respectfully). BRZS has had an identical cross of the EMA(13) over the (34) and is pushing the upper resistance limit of its current channel. Any pull back to EMA(34) would be a great entry point. Similarily, YANG is about to have a cross over of the EMA(13) and has a KST indicator just now moving above zero. China has been a source of worry and anxiety for about 18 months now which has not been aided by the fact that PBOC announced additional liquidity for their banks.

BRZS: Daily Brazil 3X Bear

YANG: Daily China 3X Bear
U.S. Treasuries: TMV
I think TMV is a fantastic long term buy. For the TMV chart I have proposed what I believe to be the limits of TMV's range while it consolidates ($40 to about $47) after the previous descending channel. It too is a speculative buy as the EMA's are below the MA(144) but the EMA(13) has already crossed over the EMA(34) and I am betting will bounce off and back upward. The Slow STO (5) is currently below 20% so this is a great buy at this level. 

TMV: Daily 20 Year Treasury 3X Bear
Energy: ERY, USO (DWTI)
I continue to expound my sincere admiration for ERY which is looking fantastic at this point. The EMA's are closing in on the MA where any pullback to the EMA(34) should be bought. Despite the recent news that Arab allies and U.S. have expanded operations into Syria I do not believe oil prices will rise significantly. Thursday's EIA report should show us that reserves are being added to due to domestic production and Libya's largest oilfield is back online. Taking advantage of oil's decline can be done with DWTI (not shown). I am personally short crude oil at this point. USO's downward channel looks to be firmly in control and I am currently waiting for a breakdown on the weekly chart before I start adding more to my position.

ERY: Daily Energy 3X Bear
USO: United States Oil Fund

Jakob Richardson © 2014