Wednesday, June 10, 2009

TZA Trade Taken Today

On this morning huge gap, sold out of long positions and quickly switch to short via TZA and here's why. Market internals were deteriorating badly soon after the gap up. More declining than advancing issues and this rally is slowly dying.
this was the reason behind the tza trade. see chart. aapl, goog, gs, bidu and many leaders were all down as the markets gapped up open. also, many small gainers in premarkets while the futures were rocking higher. this sort of divergences always favor the stocks, not the indexes. down we go! Long TZA at 20.5 for day traders and swing traders. Not calling a top here but at least a short term pullback as clearly upside looks capped for now.

Advances & Declines
NYSE NASDAQ Advances 1,229 (44%) 886 (34%)
Declines 1,496 (53%) 1,564 (61%)
Unchanged 100 (4%) 126 (5%)
Up Vol* 793 (59%) 158 (32%)
Down Vol* 527 (40%) 328 (67%

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