The new 3x ETF’s–triple your pleasure — or pain

@ 3:59 pm
GMI2/6
GMI-R5/10
T210858%

As you know, when I try to trade the trend of the QQQQ, I buy QLD (ultra long) or QID (ultra short) ETF’s.   These ultra   ETF’s are designed to move twice as much as the underlying index they track.   Well, less well known is that there now exist 3x ETF’s, designed to move three times as much as the underlying index. I knew about the recent emergence of these Direxion ETF’s, but was surprised to see how quickly they have caught on.   I have now located 16 of them, and 8 of them traded more than one million   shares each on the NYSE on Friday.   Here are the ones I have found.   Bull ETF’s: FAS, BGU, TNA, ERX, EDC, MWJ, TYH, and DZK.   Bear ETF’s: FAZ, BGZ, TZA, ERY, EDZ, MWN, TYP, DPK .   One can even trade options on most of these!   Remember, the leverage works both ways, they aim to go up or down at 3x the speed of the relevant index.   Still, if I have a good idea of the trend, these ETF’s may prove better than going to the casino and putting everything on black or red………..

Meanwhile, the GMI

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Second day of new QQQQ short term up-trend

@ 11:25 pm
GMI1/6
GMI-R4/10
T210846%

There were 7 new highs and 162 new lows in my universe of 4,000 stocks on Thursday.   Only two of the stocks on my IBD100 lists hit a new high on Thursday:   SXCI and HMSY.   But the QQQQ was strong, and now 67% of the Nasdaq100 stocks closed above their 30 day averages, the most since January 9th.   The GMI remains at one and the GMI-R at four.   I   do not know how long this up-trend will last but it pays to watch it closely.   I have a very small position in QLD, the Ultra long QQQQ ETF, and will add to it if the trend continues.   If the QQQQ up-trend fails, I will be stopped out with a small loss.   The key is to keep doing this until I catch a real up-trend.   I have learned from other bear market bottoms that when I give up in disgust, I   miss the real turn.

New QQQQ short term up-tend? IBD100 stocks at new highs

@ 10:57 pm
GMI1/6
GMI-R4/10
T210841%

The Nasdaq 100 Index, as measured by the ETF, QQQQ, looks as if it started a new short term up-trend.   However, with the key moving averages being flat, I don’t trust these signals yet.   But I remain vigilant for signs of a turn.   There were   9 new highs and 107 new lows in my universe of 4,000 stocks   on Wednesday.   Interestingly, 60% of the Nasdaq 100 now have their MACD close above its signal line, the most since January 9th.   A rise of the MACD above its signal line often occurs before a trend turns up.   Four stocks at new highs were on my IBD100 lists: HMSY,MYGN,SXCI and CEPH.   These stocks should be watched for possible leadership in a sustained rally. Meanwhile, the GMI and GMI-R increased on Wednesday.   I prefer the GMI to be above 3 before I take large long positions.   I remain mainly in cash.