URTY - the 3X leveraged ETF for the Russell 2000 LONGURTY seeks to yield 3X the Russell . The Russell has lagged the other major indices. This is
probably because this is a big collection of small companies which are weaker in general
and more suspectible to financial pressures like to cost of borrowing to finance growth and
so on. This week the Russell is out performing SPY, QQQ and DIA. These leveraged ETFs should
not be traded downside as the 3x causes expotential decay over time. Buy and hold will not
work well.
On the chart, the up trends as tracked by the "alpha trend" indicator are fairly obvious and
substantial. The zero lag MACD confirms buy and sell signals with K/ D line crosses. Entry
points are marked by a dramatic uptick in relative volatility making it easy to buy fast
and early in trend momentum, URTY is up nearly 20% so far in June. ( So much for sell
in May and go away). At present, it is waiting in consolidation waiting for more buyers
to step into its price action.
