The Bottom Line:
- Ryan fills in for Glenn to highlight Contra ETFs on the radar
- Market timing signals show signs of weakness in the current rally
- Analysis of DW timing signal and MACD for market momentum
- Six ETFs to consider for playing downside moves in major indices
- Strategies and insights shared on leveraging Contra ETFs for optimal returns
Ryan’s Insightful Take on Contra ETFs
Ryan’s Evaluation of Contra ETFs Performance
Now here I’ve got six ETFs to play to the downside of the market these are all Contra ETFs playing the major indices now first on the list here we have dog this is just a one:1 ratio playing to the downside of the Dow Jones industrial on top of that I have psq which is one to1 to the qqq’s I have qid which is double leverage to the q’s and I have sqqq which is triple leverage to the downside so if you’re newer to Contra ETFs definitely would recommend just a one to one ratio however if you have more experience dealing with these you can leverage them two to three times now on top of that I do have spxs playing to the downside of the S&P 500 Triple leverage and last on the list I do have S Soxs which is is bearish on the semiconductors triple leverage.
Technical Analysis of Selected Contra ETFs
First on the list is dog or dog here this shorts the Dow Jones Industrial you can see price action breaking above that 20-day exponential moving average and on top of that we do see the Three cross above the eight here so some early signs of momentum showing to the upside we do have a level of resistance coming in at 2959 I’d like to see price action break Above This level of resistance just to get confirmation to the upside or at least take out yesterday’s upper Wick now here we have psq which shorts the qqq’s one times leverage we do see the three did cross above the 8-day exponential moving average now price action did try to get above that 20-day exponential failed to do so with the Gap lower today now here we have qid this is a two times leverage here same price action three is above the eight currently however price did drop back below that 20-day exponential moving average we do see qid found a low on the 8th of March at 891 now here we have the spxs shorting the large cap bear we see strong momentum to the downside here the three is still below the eight so still early to jump in this position here I’d like to see price action stay above this low of 912 to show us that this downside momentum has started to WAN now for an entry price I’d like to see price action break above yesterday’s high at $9.60 now here we have the sqqq you can see momentum to the downside here price action trying to find a low at 1028 I’d like to see price action break Above This High here at 1146 just giving me confirmation to the upside in addition I’d like to see price stay above that 20-day exponential moving average now here’s s Soxs shorting the semiconductors here again this is triple leverage we’re seeing the low come in last week at 276 now with confirmation to the upside I’d like to see price action get above this 20-day exponential moving average along with the three staying above the 8 here on strong volume showing me some conviction amongst the market.
Market Sentiment and Future Strategy
now VV Nation now I hope you enjoyed tonight’s presentation now as I said don’t go ahead and just jump into these Contra ETFs we want to see some confirmation whether it’s the Dew down signal given some red lights appearing in the color guard this week as well wait for the dust to settle after the interest rate decision on Wednesday to really give us a sentiment of where this Market is moving now if you enjoyed this presentation make sure you subscribe to the channel so we can keep you updated going forward like and share amongst your Social Circles so that way they too can also make money in this market have a good night hey VV Nation do you have access to the vector vest tool the most powerful tool in the industry right now no well I’m going to give you an opportunity to take advantage of an out standing deal simply go to www. VectorVest docomo 30 days for $9.95 that’s an outrageous price for a trial so what do you get well you get uh the opportunity to see how we have outperformed the S&P 500 by over 2,000% for the last 20 years we go down we can see that we track over 18,000 stocks globally and have access access to analyzing those and we’ve got 25 years of accurate Market predictions yes folks we time the market simply folks all you have to do is go to www.arvest.com YT 9.95 for 30 days and we offer a hasslefree refund folks take advantage of it right now [Music] yeah.
Identifying Weakness in the Current Market Rally
Analysis of Market Weakness in the Current Rally
Now the first chart I wanted to bring up is the vector vest composite or VVC, consisting of all 9,000 stocks we currently track in our database. Price action collectively shows an increase over the last 3 months. However, caution is warranted as the MTI hit historically overbought levels around 1.5 to 1.6 and has since been retracing, signaling a bearish divergence between the MTI and price action.
The buy-sell ratio, which indicates the overall market health, along with the RT relative timing showing an unfavorable short-term price trend, further raise concerns regarding the market’s strength moving forward. These signals point towards potential weakness in the current upward momentum.
Timing Signals and Analysis for Market Direction
Our Dew timing signal incorporates a DPO, upper and lower envelopes, and a 30-day weighted moving average. The last Dew up signal successfully captured market upside back in January, but recent price action nearing the 30-day weighted moving average implies caution. Waiting for a Dew down signal to confirm downside momentum might be prudent.
Additionally, the MACD line crossing below the signal line and histogram bars dipping into negative territory suggest increasing bearish momentum in the market, supporting the notion of a potential downturn.
Contra ETF Recommendations for Market Decline
Here are six Contra ETFs positioned to benefit from market declines, each targeting major indices like the Dow Jones Industrial, S&P 500, semiconductors, and others. From one-time to triple leverage options, these ETFs offer various levels of exposure to downside movements in their respective sectors.
Technical analysis of these ETFs reveals early signs of downside momentum or a need for confirmation before entry, emphasizing the importance of careful consideration and potential signals like breaking above resistance levels or specific moving averages to validate the trade setups.
Analysing DW Timing Signal and MACD Momentum
Market Weakness Analysis
The vector vest composite chart shows an increase in price action over the last 3 months, but caution is advised as the MTI indicates historically overbought levels and a bearish divergence with price action. The buy-sell ratio and RT relative timing also suggest potential market weakness ahead.
Timing Signals and Momentum Analysis
The Dew timing signal, utilizing DPO, upper and lower envelopes, and a 30-day weighted moving average, has previously captured market upside effectively. However, recent price action nearing the 30-day moving average calls for a Dew down signal confirmation. The MACD indicator points towards increasing bearish momentum in the market.
Contra ETF Recommendations for Downturn
Six Contra ETF options are highlighted for potential market declines, offering exposure to major indices like the Dow Jones Industrial, S&P 500, and semiconductors. Technical analysis of these ETFs reveals early signs of downside momentum or the need for confirmation before entry, emphasizing careful consideration of resistance levels and moving averages for trade validation.
Exploring 6 ETFs Strategically for Market Downtrends
Analysis of Selected Contra ETFs for Market Downtrends
Now I’ve identified six ETFs tailored to capitalize on market declines, focusing on major indices such as the Dow Jones Industrial and S&P 500. These Contra ETFs offer varying leverage ratios, from one-time to triple exposure, allowing for different risk levels based on experience.
Technical Evaluation of Contra ETFs’ Performance
A technical analysis of these Contra ETFs showcases early indications of potential downside momentum or the necessity for confirmation before initiating trades. It’s crucial to observe critical points like resistance levels and specific moving averages to ensure that trade setups are validated effectively.
Leveraging Contra ETFs for Optimal Returns
Evaluating Contra ETFs for Potential Returns
Here are six Contra ETF options strategically chosen to benefit from market declines, covering major indices like the Dow Jones Industrial and S&P 500. These ETFs offer different leverage ratios, catering to varying risk preferences based on experience.
Technical Analysis of Selected Contra ETFs
Detailed technical evaluations of these Contra ETFs reveal early signs of potential downside momentum or the need for further confirmation before initiating trades. Key indicators like resistance levels and specific moving averages play significant roles in verifying trade setups effectively.
Market Conditions and Future Strategy
Assessing market conditions alongside key timing signals and momentum analysis provides insights into potential weaknesses in the current market rally. These observations signal the importance of careful consideration and confirmation before making strategic moves in Contra ETF positions.
