Technology Follow up: TYP Long

This is a long trade in the WOWS Model Portfolio, TYP is an inverse leveraged ETF that gives you short exposure to tech. Since the market has been directional since August, I chose a broad ETF rather then a specific stock, that will change moving forward, but for now, TYP should look like the opposite on XLK 3C-wise if there is confirmation. So lets take a look.

 First accumulation almost always occurs on light volume over a period of time as to not arouse any suspicions by traders running volume surge indicators. There's no point in accumulating at low prices if you announce to the world you are buying there, then prices are driven up and the average accumulated position becomes more expensive. We can see that very concept in TYP in a rounding volume type of bottom pattern.

 Here the 5 min chart is leading positive, the opposite of the XLK chart, thus we have some confirmation.

 The 15 min chart is leading very positive.

 As is the 30 min chart where we see two distinct areas of accumulation right about at the same level. Orders by large institutions are often placed with market makers or specilalists to be filled at  a certain price, that's why the VWAP is so useful. If the middleman can fill the order at the customer's target price, they get more business, if not, they lose business, so you an see there's a pretty particular price where accumulation is found and when TYP move up, the accumulation stops until it is back in the range.

The hourly chart probably shows this best and is very positive, unlike XLK which is very negative which makes sense as this is an inverse ETF or a short on technology.