SPXL trade ideas
SPXL - Not normal at all!-As we all know, COVID-19 was a hard period of time full of uncertainties. While many of us were scared that the market will maintain a bearish run for a good amount of time and that the effect of the Pandemic will show its negative effects throughout the years as the economists predicted too, the Market showed us a totally different scenario. Both the SP500 and Nasdaq had a tremendous rise during the pandemic and the market was nothing but all green and positive. For the beginner investors who started investment with the help of social media and some research added on the positivity and for a period of time, it felt like no matter where you put your money it turned green in the next couple of days! But here we are, the harsh reality time has come. Now it is the time for the bubble to pop and for the stocks to go back to the normal way of performance rather than having an "Always Rising" state.
-Okay yeah the market is a bubble but so what? Can't it be the new normal? Why do we think that things are going to go bad soon?
Because of the following facts dear ladies and gentlemen!
Fact # 1: The well-known Buffet Indicator shows us the ratio of total US stock market valuation to GDP. Named after Warren Buffett, who called the ratio "the best single measure of where valuations stand at any given moment". Currently, the ratio has passed the levels of "over-valued" and it has officially entered the "Strongly over-valued" levels. We are currently standing at the levels of the popular Internet Bubble. While the Internet Bubble popped at +67% the current level of the indicator is standing at +88%. It is a brainer, we are rising at a very abnormal speed, and the state of the economy is not that positive.
Fact # 2: Level of Corporate Debt. According to the research that the popular McKinsey has done, the Global debt has grown from $97 trillion to $169 trillion since the crisis but has been stable relative to world GDP. It is bad.
Fact # 3: Levels of money printing are at their highest highs. At this point, FED can either keep printing to sustain the green state of the market, or at a point if they stop printing (cancellation of stimulus paychecks, unemployment paychecks, COVID affected interest-free small-business loans) then things will definitely fall apart.
SPXL - Corrective Rising Wedge!-SPXL has successfully formed a corrective rising wedge that looks pretty bullish!
-Past week's FOMC meeting also gives us some positive expectations.
-They expect a decrease in:
Unemployment rate: 4.5 (2021), 3.9 (2022), 3.5 (2023)
PCE inflation rate: 2.4 (2021), 2.0 (2022), 2.1 (2023)
-They also expect a decrease in GDP from 6.5 (2021) to 2.2 (2023). This part keeps
us conservative as it shows that upcoming years will be tough and we all will need
to keep a tight stop-loss on our investments.
-For now, SPXL looks pretty bullish! As long as it stays between the lines of the Wedge,
it has a potential to rise to resistance level @ 85.
SPXL ShortIn Uptrend Wedge
Gap Down 2/22/2021
Gap Down 2/23/2021
Short 77
Stop 85
Target 50
I am not a PRO trader. I trade option to test my trading plan with small cost.
The max Risk of each plan is less than 1% of my account.
If you like this idea, please use SIM/Demo account to try it.
SPXL Dips below major support at 70.60
We saw prices closed below major support at 70.60 in the daily chart in Friday's session. It has failed two major levels so far. It held up above 73.40 for about 10 ten days before breaking down.
Critical levels to watch in the upcoming sessions are around 70.60 resistance level; it needs to hold at this level to head back up. Critical support is at approximately 66.30; prices could fall to this level if it fails to get back above 70.60
Kiss the ringWhich option will she choose?
The red or the green one, that is the question!
Interested in your comments.
[SPXL] And You Thought SPX Was Weak... 3D SPX Futures Freefall!You can speculate on future price, that's futures.
Speculating on the degree of future price movement, that's SPXL.
Not many people leveraging up 3x to bet on upside, SMA 21 can't even keep up!
This thing free fallin like full moon fever.
Next week should be fun B).
[SPXL/SPX x SPX] SPXL Megaphone Puts SPX Megaphone to Shame!SPXL Megaphone pattern is broader and what's worse is that Price only made it just over HALFWAY back up rather than all the way back to the top again as SPX achieved.
Now SPXL Price is barely hanging on at dead center of the Megaphone and the trend here is overwhelmingly more BEARISH than the SPX trend would suggest.
I pegged these two starting from the first peak in the megaphone. Another reason I'm looking for much more downside to come.
SPX500 Near Future Time and Price SetupLook to the past price and time points for the future time and price setups.
[SPXL] Falling Wedge: Get Ready to Short the BREAKOUT!When this thing breaks Mon or Tues, we're supposed to get some upside reversal movement but that won't last for long.
Will make for another good short entry point here before it continues heading down through October.
[SPXL] Megaphone Trading Range: Dialing In BULL RUN Strength!Still in it's infancy but we got the start of our SPXL trading range and Treasure Map.
Targeting at least magenta $42 line here before even considering any longs.
Solid chance we'll get down close to bottom of this megaphone in long run before any new ATHs.
[SPXL x SPX] Bearish Diverg: BULLS Not Putting Money to MOUTH!Just look at this massively oversold market.
At 3x leverage the Bulls have entirely chickened out of the market to an astonishing degree.
One of the best data points I've found for the dead cat bounce case.
While SPX was setting ATHs, SPXL was setting dramatically LHs.
Finally found the ideal market to long SPX with UVXY profits when the time is right B).
We may be at the end of the down move, but it still looks bearshlook at the Stochastics, extreme overbought sell still in effect. Let me find the chart in the right timeframe.
My shorrts are nearing the Camirilla Pivots weekly R$ my trading plan is not disionary, I must take profits soon i think.
