ERY Energy Bear 3X Daily Chart Positive Divergence

This is the energy bear ETF, one of the triple X crack ho's, a very dangerous vehicle. ERY is a bear play, shorting energy, since it moves three times the inverse of the energy sector. A lot of energy trading occurs around the ISM manufacturing index and the release just occurred minutes ago, with encouraging news meeting expectations.

A trade used for months was to play energy long going into the end of the month and sell on the ISM news that hits on the first of the month (today). Since the bull run this week bounced everything quickly, the bullish side left less room available above, so perhaps the traders that are enjoying this week's energy profits may take some off the table now.

Note how the blue postive divergence bounced the ERY, red negative divergence spanked it down, then green positive divergence bounced it again. ERY is now printing new lows again and the black lines show the postive divergence in place for a potential launch once again. The weekly chart is also positively diverged across all its indicators so this is typically an awesome combination which projects a bounce coming.

These ETF's are only for the most experienced traders. Others will simply lose their money; even the pro's lose their money more often than not. 11.20 is a critical level since Keystone's 80-20 rule would suggest if 11.20 is lost, price will want to move down to test the 10.80's. Projection for now, however, is for a nice bounce to occur for ERY off of these current levels. If 11.20 is lost, the trade can be exited and potentially placed back on under 11. 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 financial advisor before making any investment decision.