Saturday, August 10, 2013

Trying out the new tool

I'm taking the new tool out for a spin again (The one that inverts and magnifies daily movements for a chart similar to how inverse 3X daily ETFs do) . I'm screening for stocks in a downtrend and then I put them in the tool. This is some of the charts that comes out

A megaphoning chunk of volatility with a concave support floor just like is so regularly seen in volatile periods of levered inverse ETFs.

When I saw the above chart of BCE I thought, haven't I already seen this chart on the leveraged silver ETF?

Yes I have! There it is.

And how about ANV for BOTyness and megaphone pattern? It might already have adjusted a lot when markets open on monday but the chart is extreme right now. I would short this aggressively if it was a leveraged ETF. The propblem with single stocks is that they can go bankrupt,but the question is, do they do it in this pattern? (Remember all these charts are upside down with 3X daily leverage).

And a final chart. Nothing extreme but still interesting.

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