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11 popular short/ultrashort ETFs on the watch list: SH, DOG, PSQ, RWM, SDS, DXD, QID, TWM, SKF, SRS, DUG
Trading signals: MACD(21,34,8), full STO(34,21,8). Each ETF should have 2 signals, 1 from MACD, 1 from full STO.
Rules:
1. In MACD, if MACD>EMA8, it's a "buy" signal, otherwise, it's a "sell" signal.
2. In full STO, if K>D, it's a "buy" signal, otherwise, it's a "sell" signal.
I started to monitor those signals since 4-24-2009 with 0 "buy" signal. The 1st "buy" signal was from DUG on 4-27-2009, but it was reversed the 2nd day. SKF registered the first "buy" signal on 4-28-2009, and it's still valid.
We all know that market went up a lot since 4-28-2009 (INDU>500 points). Interesting enough, the "buy" signals on my watch list never decreased. Instead, it has been increasing in a surprising way, which I think is a very negative "divergence". |
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