ERX is the 3x leveraged long Energy ETF, ERy is the 3x leveraged short energy ETF. Friday I entered half of a speculative position in ERY leaving room to add another half at better prices. More or less I think there will be rotation in any move up or down and the 3 main sectors are Energy, Tech and Financials, I want to have some representation in each as rotation is becoming more and more of a theme, I chose Energy broadly rather than USO which is narrow (oil only).
I am looking to add to ERX, but I'll be a bit more patient before doing so.
Here's an A/B comparison on where we are with both and remember I am not expecting a new primary uptrend, I'm looking for a fast, sharp shakeout. Fast could mean a week, maybe two weeks.
ERX 1 min Bull positive divergence on today's pullback in Energy.
ERY bear negative relative divergence on the 1 min chart
ERX (bull) 5 min positive divergence on the pullback in Energy.
ERX (bear) relative negative on the same 5 min chart
ERX (bull) 10 min improving positive divergence.
ERY (bear) 10 min deteriorating 10 min divergence at highs. I'd like to see some more lateral trade in both before adding the second half of the position in ERX.
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