Market On Open - Tuesday 9 January
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Definitely Up, Or Down. Or Sideways.
As discussed on our webinar yesterday (paying members can watch the video here), equity indices’ direction is a little challenging to discern right now. The Nasdaq looks like it may run up a little before a correction; the S&P like it is about to correct, ditto the Dow; and the Russell like it is mid-correction. All sensible, right? Well, that’s what I thought yesterday too, whereupon a ginormo-rally disproved my carefully-observed take on price action. All was not lost however - as per disclosure alerts in Slack yesterday I was fortunate enough to be able to sell TZA (3x short Russell) at a worthwhile gain and sell a poorly-judged TNA (3x long Russell) position at cost - it had been underwater. I also took profits on UDOW (3x long Dow) and on SDOW (3x short Dow). The idea being to reduce exposure and reduce risk until market direction becomes clear. I have a modestly underwater position in SQQQ and in SPXU; we’ll see whether they have to be exited at a loss or whether they can be salvaged. Futures and equities in the pre-market session are down a little, but that was true of yesterday too, so, as always, price will tell us where price is heading.
Daily Charts
For paying members we now run through our usual charts covering the main US equity indices, associated leveraged ETFs, plus the SOXL TECL and FNGU ETFs as always.
Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.