WELCOME

Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...

Dots

...If the dots don't connect, gather more dots until they do...or, just follow the $$$...

Beach

Beach

Events

UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. June 3 @ 2:00 pm ET ~ Beige Book Report
* Fri. June 5 @ 8:30 am ET ~ Employment Data
* Wed. June 10 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. June 10 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Tues. June 16 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. July 1 @ 2:00 pm ET ~ FOMC Meeting Minutes

*** Click here for link to Economic Calendars for all upcoming events

ANARCHY

*ANARCHY IN AMERICA: How many more old ladies will have to be beaten up before someone stops the lawless rioting in America?

Monday, February 10, 2020

FNGU: Blow-Off Top Coming?

I last wrote about FNGU in my post of December 26, 2019.

FNGU is an exchange-traded note that tracks 3x the daily price movements of an index of US-listed technology and consumer discretionary companies. The index is highly concentrated and equally weighted.

Since then, price blew through both the 78.6% Fibonacci level and it's prior all-time high, as shown on the following weekly chart.

The Balance of Power still lies in the hands of buyers, in spite of a bit of a blow-off in the last weekly candle. We may not see a trend reversal until this indicator spikes to, and closes on, a new high in one of the coming weeks.

I've shown the input value on both the Rate of Change (ROC) and Average True Range (ATR) technical indicators as one period and both indicators in histogram format.

The ROC on this past week's candle is just below its all-time high (which may be reflective of its blow-off close for the week). No doubt, it may have been at an all-time high when price was at its high of 100.11 on Tuesday.

The ATR spiked to an extreme all-time high this past week.

While the Balance of Power appears to indicate that the buying may not yet be over, the ROC and ATR indicators are hinting at some volatility, choppiness and caution ahead. We may see price attempt to retest last week's all-time high before it, either consolidates in a sideways trend, or drops to near-term support around 80.00, or lower.

However, the Nasdaq Composite Index (IXIC) is only 480 points away from its 10,000 target (as of Friday's close)...a figure I mentioned in my above-referenced post. So, we may see a parabolic spike to that price in short order. If so, we'll likely see FNGU retest 100, or spike higher...before they both, potentially, form blow-off tops.