It’s nice to be back. The GMI Buy signal remains in effect. IBD sees the up-trend under pressure. The QQQ, SPY and DIA are bouncing up off of short term support. All averages remain in strong longer term up-tends. I tune out the news and pundit hysteria and let the market tell me its direction. It takes many weeks for a top to form and I see no evidence of one beginning to form. This weekly chart of the S&P 500 Index ETF shows the index to be in a strong Weinstein Stage 2 up-trend which began in early 2012. As long as the SPY remains above its rising 30 week average (red line) I stay invested on the long side. To learn more about how I use stage analysis, listen to my December, 2012 Worden TC2000 video, whose link appears to the right of this post.
Welcome back.
Now, for a pithy question: if one’s account permits it, and if one were to choose to use a 3X etf during a buy signal, would it make sense to short an inverse etf, such as SQQQ, to take advantage of its time decay?
Welcome back, Dr. Wish!
Sure one could, but why not just play the long or inverse ETFs? Keep it simple.