I started mentioning the XME a couple of weeks ago because it had launched up to the top of the sector list, and had briefly surpassed the XLF as the top sector since the March low.
And now, it is a wreck, sporting the worst kind of head-and-shoulder topping pattern: one that slopes downward (click chart to enlarge):
This pattern projects down to the XME’s breakout level of 31.25, and very possibly a bit more.
Sorry bulls; it ain’t over.
SMN is the inverse ETF to go along with the XME, and as I mentioned in the comments over the weekend, it has a bull-flag pattern on its chart:
A 100% extension of the bull flag would target the SMN’s May 14th peak (red circle). However, given the sorry state of the XME, the SMN may be intending to extend farther up and fill its April 30th gap (blue box).
If the XME wants to bounce up and back-test its neckline tomorrow, I will load up with some more SMN. (Note: UYM is the ultra ETF to go with the XME.)
Matt,
If only i were looking for SMN instead of SMH we would really be enjoying some 20%+ gains already (hypothetical buy on Wednesday the 15th @ 16.74 – 17 range )
I hope i can max this strategy for another year reap benefits and move onto the next one
OHH NOESSSSSSS
http://247wallst.com/2009/06/22/a-reverse-stock-split-in-etfs-more-likely-to-come-mwn-fas-faz/
ok i keep having thoughts .. now with 1:2 faz reverse split.. my 6 strike for july…. will it double to 12 or will i be able to buy at $6 just because i have already purchased the option?
I might squeeze in a trade here or there tomorrow or might close out a short position or 2 or I might not touch anything.
No stops or take profit levels either in place.
As the afternoon wears on I will take a deep breath and step onto a flying bird and fly far away. When I get back I hope Hawaii fireworks never happen and if they do I might stay there and forfeit the round trip cost.
Farewell my trading gang! More riches your way! (Charlie you can take care of my girl’s FAZ if you want… she’s really not my girl she just sees a $ sign on my forehead and chases me around
)
see ya in a couple of weeks!
Junglegirl,
We use OptionsXpress for options and
futures. We almost always place limit
orders going in with stops keyed up.
For options we place the limit order
half way between the bid and ask.
Almost always get a fill.
Paula
Have a good trip K.
JG,
I do my options trading at E*Trade, and get fast fills.
Matt
not meaning to make this a personal blog but so far not starting out good. let’s just say medical stuff. UGH i hope the show does go on.
later gang i decided thanks to that no trading tomorrow. lol(if i can keep off of it)