Here's the P/L for DZZ which really hasn't gotten too far off the ground yet, but I have a lot of faith in the position when it's time to move back in and the charts.
Here's the kind of break of support that triggers stops and allows accumulation because the stops are providing supply for institutional traders that are trading on a much larger scale and have to be careful how much they enter at once or they drive price against them and attract predatory HFT platforms that seek to front run their order, plus it's just not good to show your cards in a poker game.
The "almost" Star candlestick on increasing volume is a pretty decent candlestick reversal signal, there's no target associated with it, but it's telling us the trend is likely to change, especially with a gap down and a gap below support levels that are obvious.
This is GLD's 3 min chart, you can see the action today, like I said, I'm not alarmed if I were to hold DZZ, but it's important to know what your trading plan is and trade that plan, a leveraged ETF/ETN in a trading portfolio has the ability to make money rather than just watch draw down, even if you're not concerned with it.
The 5 min chart is probably the most convincing to go ahead and make the switch and that's all it is , a temporary switch.
DZZ itself confirmed, this is a 15 min chart, the gap up alone is enough to take a very close look as the market has been so ruthless about filling gaps.
The 5 min chart was more confirmation, taken with GLD's, there's a pretty strong case for a trading position switch.
And intraday we saw the same thing in DZZ, so this just made sense,
especially after the beating gold has taken recently.
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