Direxion Daily Technology Bear (TECS)

[Bill de MT]

Everything is in a deep pullback, no kidding. But, it's still in a long term upward trend from June. ...which I'm sure is now reversing only because I got tired of getting beat up in bear ETFs and went long. :)

TECS had a good day. $RITEC ended the day with a 1.62% drop to right above support at 1388. If it breaks that support, it should drop to 1370. AAPL looks like it might drop to $652. Given today's ugly red candles I'm not so sure that even those support levels will hold for $RITEC and AAPL. $RITEC could hit 1330 again. So, TECS probably still has some legs in it. It had a nice green candle today on decent-ish volume. And it formed some hammers signaling a trend reversal last week. If it gets past 8.35 tomorrow, then 8.90 will be its next resistance, then 10. Right now, it's one of the better looking charts I follow.

The keys will be to watch $RITEC and AAPL as well as to not linger holding TECS for very long. With contango, any upward trend is dwarfed by a natural longer term downward trend. Take profits. And I wouldn't count on AAPL getting much under 652. It likes to stay above the SMA50 which is now 645.

I'm long in a small cap tech stock right now, AMCC. Getting beat up, but I don't see the upward trend broken yet. Might be averaging down, though.