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Intimidating Inverse ETF Chart Patterns
Ignoring everything else (news, opposing opinions, etc.), the inverse ETFs are giving a clear message amidst the confusion.
Check out these inverse ETF charts: SCC, SDD, TWM, MZZ, RRZ, SKF, EEV, SIJ, RWM, SBB, SJL, MYY, EUM and SDK. Every last one of them has quietly coiled right into 50 day moving average support just like GLD and the ag/chem stocks (two Zacks Challenge blogs) did in December before rocketing in the teeth of the unfolding market downtrend. The chart of TWM (double inverse Russel 200) is shown below. All of the medium and long term moving averages are trending up, indicating a clear uptrend for TWM and corresponding downtrend for IWM.
The regular indexes in contrast have not made it anywhere near the 50 day moving averages on their yet. It looks to me like we may not get the chance to exit longs and go short at the 50 day on the indexes any time soon. The inverse ETFs are saying the next wave down in the bear market is coming soon. The inverse ETFs scream loud and clear that the path of least resistance for the stock market is down.
Chart provided courtesy of TeleChart® by Worden Brothers, Inc. www.worden.com
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| Market Summary | Nov 23, 2009 04:51 am ET |
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