Thursday, May 16, 2013

YCS UltraShort Yen ETF Weekly Chart Overbot Rising Wedge Negative Divergence

YCS is a leveraged inverse short ETF for the yen and with the BOJ easing this year the chart shows a straight vertical move higher. The weaker yen is causing the equity market melt-up especially from February to present. The red lines show that this initial move is running out of gas and a pull back is ahead where the yen strengthens. The weaker yen pushes the dollar/yen currency pair higher and equities higher. Interestingly, with the dollar strengthening lately, a stronger yen may not serve to push the dollar/yen drastically lower although a pull back would be expected in dollar/yen as the yen strengthens. Projection is sideways to sideways lower for the YCS moving forward which corresponds to a stronger yen, lower dollar/yen and lower equities. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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