RETS Retail Bear 2x Daily Chart Oversold Falling Wedge Positive Divergence

RETS retail bear 2x chart that moves twice the inverse of the retail sector. As seen by the chart above, this ETF was given birth less than a year ago, interestingly enough at the time that Chairman Bernanke goosed the equities markets with the QE2 announcement. An important aspect of this chart is the thin volume, so thin you can see thru it, participation is limited currently but should increase once many other traders warm up to the short retail trade. High gasoline costs will cut deeply into retail sales.

RTH, the retail sector, shows negative divergence across the board, all indicators, and on both daily and weekly charts, which says that retail is about to receive a serious slap down. There are different ways to play, simply shorting RTH, perhaps an SZK or SCC trade, but these two are thinly traded and loosely work inverse of retail. RETS is set up to more directly short the retail sector. The oversold conditions, falling wedges and positive divergence all forecast upside ahead, and this idea agrees with all the negative divergences shown for RTH.

Price may base here for a little while but the upside is on the doorstep. The 20 MA is under the 50 MA which is actually a negative for RETS but once price turns around and heads up, the 20 MA will cross back above the 50 MA and this will verify that RETS is launching. Caution is warranted since these double leveraged ticker's are dangerous and should only be attempted by experienced traders. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.