FAZ and TZA Are Bounceable

This overdue rally has been trading inside a wedge on the 60-minute chart, since it’s break on 03/10/09.  It looks about ready to top out here though, and break the bottom line of that wedge.  If that occurs, 740 and 720 should act as areas of support.

spx-wedge-031309

On the larger daily time frame, there’s room to the top trendline at 800, but a pullback first would help the  bulls.  If it does pullback, it will be crucial it holds that 710 area, or another meltdown to even lower could occur.  One area at a time.

spx-daily-031309

I bought some FAZ and TZA for a bounce next week.  There’s a risk of price erosion with the higher leveraged ETFs long-term, but I’m looking for bounces of 10 points in each.  Bull rallies haven’t been popular during this bear martket, so I’m willing to bet on this one slowing down soon.

faz-031309

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