EDZ/FXP Update

As for leveraged inverse ETFs, these are among my favorites. Just don't get lost in the lines as we used to say in painting/art-(kind of similar to the forest/trees analogy.

EDZ

 EDZ WITH A NICE BASE AND A FALSE BREAKOUT, which we see all the time with these obvious technical patterns. It doesn't mean it's not going higher, they're just cleaning some clocks before hand in most cases and the technical pattern tends to hold up after the shakeout.

 And here's the false breakout on 3C with a negative divergence at the breakout and test. (30 min)

 But we see a positive divergence suggesting accumulation on the dip.

 Our new indicator just for heckles and giggles. It did a good job of calling the breakout, the false breakout and what appears to be accumulation. NEAT huh?

FXP

 Step back from the daily gyrations and this is a strong looking chart.

 we see another false breakout and a positive divergence on the dip.

 1 min chart looks ready to roar.

Technically speaking, we haven't even pulled back to the 10-day m.a. so this is a shallow pullback. People panic though because of the leverage. You HAVE TO ACCOUNT FOR THE LEVERAGE IN THESE ETFS when determining your risk management/stop/position size. Otherwise you'll let a good chart's leveraged volatility knock you out of a technically sound chart.

Bottom line, this looks like normal or the "new normal" market behavior and thus far, I don't see anything that would run me out of these positions.