Thursday, November 21, 2013

QID Ultra Short QQQ ETF Weekly Chart Falling Wedge Oversold Positive Divergence Price Extended

It is a tough year for short sellers. Many short shops have gone belly-up. The hedge funds are lagging in performance as well this year since the markets have only gone up. The folks that benefit the most are the long-only shops and folks that blindly stay long all the time, they are all up over 20% this year. Keystone's index shorts are hammered as well but the positions remain in place. This technical analysis for QID can be correlated to many other sectors and indexes since the chart patterns are the same. The bears should finally receive their day moving forward. The green falling wedge, oversold conditions and positive divergence all say up and the bottom is in, er, almost in. Note the tiny red circle. The pesky bulls squeeze out a lower low on the RSI. The Fed's money printing juice is powerful. So on this weekly time basis, price will want to come back down to test the low again. When this occurs, the RSI will be positively diverged and the bottom will be in. Thus, over the coming days and week or two, the markets in general are printing a very significant high.

Tech has been a big beneficiary of the central banker's stock market pumping this year and QID is an inverse ETF that goes up if the tech sector falters. The blue dots show the price extensions to the downside over the last couple years that required a mean reversion (higher prices for QID) which always occurs. Projection is that QID is printing its base now, or over the next couple weeks, and upside is ahead for weeks and months forward. Since this is an inverse ETF, it indicates that equities in general are likely printing a significant market top right now. 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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