Rally with the leveraged ETFs?

Michael Petryni
12 min readOct 6, 2021

The market, and its stocks, either goes up or it goes down. It is amazing how difficult it is to recognize that simplicity.

11/8/2021 — at the close

On the 24th trading day of the rally, TQQQ and FNGU have given CCI sell signals, up nearly 40% and up nearly 50% respectively.

In addition the NYMO clicked down at a high level, a short-term market-breadth sell.

With the rally up so much from its start on the open of 10/6, I suppose the combination of those two sells — one on the stock, the other a market signal — is as worthwhile an excuse to take profits as one might want to see.

STOCK SIGNALS: ON A 9-DAY CCI ROTATION

When a stock that is oversold quits being oversold that is a stock buy signal; if it returns to oversold before becoming overbought that is a stop; if it becomes overbought and ceases being overbought that is a sell signal; if after ceasing to be overbought it moves up again to overbought that is a renewed buy signal.

In the meantime, the NYSI continues to rage upwards, taking SOXL up 67%, TECL up 42% and NAIL also up 42%.

These are all spectacular gains in a straight-up rally that has been so persistent in its daily follow-through to the upside it looks as if it can go on forever.

Needless to say, it won’t.

(click on the chart panel for a larger view)

10/24/3021 — during the day

On the 15th day of the rally, the 3x-leverage ETFs all continue to surge to the upside…

In these fifteen trading days, TQQQ, the Nasdaq ETF, is up 24.5%; FNGU, based the big tech stocks in the FANG index, up 42.7%; SOXL, the semi-conductor ETF, up 23.4%; TECL, a pure tech ETF, up 24.4%; and NAIL, weighted with the home building and home supplies stocks, is up 27.1%.

For the start of the rally, see the comments below the chart panel posted on 10/5 for the open of 10/6, fifteen trading days ago.

The charts below display in the white flags on the right axis the dollars/percentage gains for each $10,000 traded. Click on the chart panel for a larger view.

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Michael Petryni

Journalist, film critic, screenwriter, proprietary trader seeking simplicity in trading. https://thegodoftrading.medium.com/membership