Professor’s Comments – Potential Green Arrow on TZA 12/29/2021

Posted by OMS  at December 29th, 2021

TZA, the inverse ETF for the Russell 2K could be ready to generate a Green Arrow on the 4-hour bars.  At this point, any arrow is not confirmed.  The volume has turned positive, but the momentum is still negative.  If the momentum turns positive on TZA and it generates the Green Arrow, I’m a buyer.  So far, the trade (to the short side only) has produced a profit of 60 percent.

From a wave count perspective, TZA appears to be completing retracement wave c of an a-b-c pattern for Wave 2 down.  If I’m correct about this, Wave 3 up on TZA could be ready to start.   BTW, the wave count on the Russell is completely different than the counts on the Dow, NASDAQ, and SPX.   The other sisters appear to be completing Wave ‘C’ of a major Ending Diagonal Pattern for Wave 5 up.   Once wave ‘c’ completes, probably within the next few days, they should also begin to decline in Wave D down.   Then once Wave D down completes, there should be a final Wave E rally into late February.   So for now, I view the best bet for a short is the Russell.  That’s why I’m watching TZA on the 4-hour bars.

I’ll have more tomorrow in my early Comments.

That’s what I’m doing,

h

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