SRTY Charts

I was looking at SQQQ as a long position for this week, I was only looking for one thing to happen before entering and that was a run on stops which occurred on 6/24 as we saw a short squeeze that failed (when we entered QQQ puts around 11:30 a.m. Tuesday which are still at a +20% gain despite this consolidation).

I still like SQQQ, but already have exposure there and as far as calling out a new position, I just liked the way SRTY looked better when comparing the charts today. Both have some pretty amazing changes of recent and these leveraged ETFs tend to give strong and timely signals, I suppose because of the leverage.

Looking MoneyStream (created by the father of money-flow indicators, Don Worden), although it's not my favorite for close-up work and intraday signals, it is excellent for larger trends.

 This is the daily MoneyStream chart of SQQQ, that's quite a difference and as the downside rate of change of price falls off in to a lateral (base-like) trend.

SRTY "should" give a similar signal if this is a market wide event of distribution in the averages and accumulation of inverse ETFs... This is why we always confirm.

 SRTY daily, a very similar signal.

Again, if the premise is accumulation of inverse ETFs and distribution of the averages, we should see the opposite signals in the market averages, negative divergences. Pay particular attention to the tops I drew in with red trendlines and where the MoneyStream divergences are most extreme.

 QQQ at a Broadening Top...CONFIRMATION

IWM at a H&S top, CONFIRMATION

SPY at a Bearish Ascending Wedge, CONFIRMATION.

As far as SRTY's 3C charts go...

 Here's the 60 min, note the last positive divegrence led to a decent move up, this would have been during the decline from the top of the IWM's head to its neckline.


 A closer view of the 60 min which is leading positive on a very strong timeframe for underlying trade...

The 30 min with the same positive to the left, forecasting a move higher, what is also interesting is the negative divergences at the top of the move are very weak relative negatives.

Again the current positive is larger than anything on the chart's history and well above the 3C reading at the top of the rally.

 The same is true of the 15 min charts.

Even the 5 min chart is strongly leading positive, including the area where I was looking for a head fake this week at the 24th.

Here's a closer look at the stop run/head fake move expected this week for SQQQ, but really any inverse market correlated ETF, SRTY shows a strong leading positive divegrence suggesting the head fake move, the shares stopped out were accumulated,