Direxion Daily Technology Bear (TECS)

[Bill de MT]

I don't think I'd buy it here. It just broke through some support that was hammered out over months and the trend is pretty clearly down. Plus, RITEC gapped up today breaking out of the same trend only up. AAPL is on the move as well. More downside, IMO, for TECS. How much downside? More resistance coming soon for AAPL and RITEC (charts are really slow this morning so I don't have an exact number handy), but 620-ish for AAPL. And momentum is slowing for RITEC and AAPL. TECS is also starting to show oversold. I don't think this rally is sustainable for the bulls. The key, though, is to wait for the signals on the TECS candles. A nice hammer candlestick that gets over the previous day's high- in this case 10.98. Of course, with that strategy, you wouldn't be buying at the bottom. The advantage, however, is that you're likely buying into an upward trend and know where the bottom is. This is where I srewed up with TVIX and VXX. Didn't wait to see the trend reversal. TVIX looks like it might reverse today. VXX looks like hell.