Thursday, November 20, 2014

Shits n'Giggles: Daily China Bear 3X Shares (YANG)

This morning in my news roundup I posted links to two significant headlines regarding China from Bloomberg and Zero Hedge, respectively:

Giggles: Daily China Bear 3X Shares (YANG)
I have been following China and various index funds for years now to elucidate when it is the cracks will begin appearing. I recommended YANG a few days ago but I feel a need to re-iterate this recommendation. The last four days have seen some phenomenal increases in YANG while at the same time headlines are (surprise) warning about China's ill economic health. Academic news sources began this campaign years ago, but now it appears the 'dailies' are noticing too.

The daily chart has a KST indicator that is about to cross over along with my long term MACD and TRIX lines. Additionally my StochRSI(14) indicator has moved out of the oversold area and is below the 50% line, a juicy area for returns should it continue to rise. Because directional transitions often in a series of 2's, I find it reassuring that the EMA(13) is about to cross over the EMA(34) while both continue to close in on the MA(144).

The weekly chart of YANG is looking similarily promising, albeit still in a speculative position with the current arrangement of EMA's. The KST indicator here has already crossed over and looking at the chart it is poised to break-through a resistance line put in place by a series of lower-highs going back to 2013. The StochRSI(14) indicator is already above the 50% mark and still not overbought. If you haven't had a look at YANG, I might strongly suggest it.

Jakob Richardson © 2014