Friday, November 16, 2012

Leveraged Long Add to

I'm looking to add to the 3x leveraged longs that are already in place, the choices are FAS (long Financials 3x), TQQQ (Long the QQQ 3x), TNA (Small Cap Bull 3x), UDOW (3x long Dow-30) and ERX (3x long Energy).

Here are either the charts of the leveraged ETFs or the charts of the underlying issue, for example XLE for ERX.

 I tried to fit in the entire cycle, this is the DIA for UDOW on a long leading positive 15 min.


 XLF for FAS-10 min leading positive divergence

 FAS 15 min with a recent leading positive divergence. It's not really surprising that leveraged ETFs would see interest late in the cycle from Wall Street so it doesn't really bother me that XLF in general looks better than FAS.


 TNA-small caps, 15 min has a really sharp leading positive divergence, great momentum there.

 TQQQ 15 min also looks really great as does the QQQ.

XLE has a decent 15 min leading positive divergence.

I decided to go with TNA as an add to. UDOW covers large caps, Energy I think is important to have some exposure to, but I'd rather have the least there as geo-political events are totally out of our control.
TQQQ for me is very close to AAPL long so I think that's covered. So for me it comes down to Financials (FAS) which is also close to SPY coverage given the Financial weighting in the SPY and TNA. Since there's coverage in large caps and TNA is also similar to the IWM and the IWM should lead a risk on move, I think I'll go with TNA for IWM coverage and small caps and it looks fantastic.


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