Saturday, August 17, 2013

Ideas for Monday

Real estate ETF looking almost ready. I'm hoping for an overshoot (when the stocks breaks the exponential curve but still moves higher, usually in the end of a BOT) to enter. Unfortunately there are no stocks available for short sale at my broker. Alternatives are SRS or going long an unleveraged ETF, there are plenty to choose from. In those cases I pick the one with the highest volume. Volume has value. JP Koning in his excellent blog on monetary matters calls this liquidity premium.

This is REZ, a regular real estate ETF, with the chart altered 3X and inverted. It is looking totally ready.

Brazil bear ETF BZQ is not quite ready to be traded yet (A general rule of stock trading I believe in is that it is better to miss opportunities than to do mistakes) but looks very interesting. I wonder where it is going with this. 

This is an India ETF. I don't think there is any 3X bear India ETF available. Taking a regular ETF and inverting it and expanding it 3X shows a better picture of what's going on. The chart is clearly spiking inside a megaphone pattern. My favourite pattern to trade. That the latest gap down is so big shows there is a lot of momentum in the movement. If the spike is not bigger on Monday then it means it spiked when the market was not in session. This is close to a trade, Monday will tell.

I'll plan to do a post (no promises) with regular stocks in inverse BOT/Megaphone patterns before Monday but ETFs are my first priority.

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