RSI(14)<30 for UYG

    Posted by junkmaylbox on 5th of Mar 2009 at 10:40 am

    I would take a sizeable position in it if it does not make a new low today. Do your own due diligence, of course.

    UYG did set a new

    Posted by jhsimon on 5th of Mar 2009 at 10:44 am

    UYG did set a new low today, did it not?

    XLF

    Posted by junkmaylbox on 5th of Mar 2009 at 01:23 pm

    Yes, it has. My hunch is telling me that we are close to a bottom in XLF and UYG. I am not buying anything today, I am going to see how we close on XLF.  FAS under 3.00 and UYG under 1.60 are very good buys, IMO. Just make sure that you use no margin and can withstand another drop if it happens. My guess was that UYG would go down to 1.50ish, and FAS to 3.00, and we are there now. FWIW.

    I picked up some FAS

    Posted by jhsimon on 5th of Mar 2009 at 01:34 pm

    I picked up some FAS and UYG yesterday (oops) and some more today (fortunately at the lows, at least so far). I'm also thinking that we are getting close to a short-term bottom in some of the financials (though JPM broke a triple bottom this morning), but I'm prepared to accept another downdraft if it happens. FAS and UYG are in IRAs, so no margin issue there.

    XLF

    Posted by junkmaylbox on 5th of Mar 2009 at 01:53 pm

    I sold 3/4 of my FAS holding at the open yesterday, when it was clear to me that the previous low had been breached. I am riding down 500 shares of FAS from 3.95, and will buy more tomorrow (my IB account is locked today for having done 3 day trades within 4 days :( ). The volume on XLF does not look capilatory yet, so far it's declining with declining prices, so far. MACD does not move. We may have a volume spike today if 680 is breached. So far the decline of XLF has been very steep. Picking its bottom is literally catching a falling knife. FWIW.

    A word of caution on XLF

    Posted by junkmaylbox on 5th of Mar 2009 at 01:57 pm

    cwa82675 has warned me that UYG may go to .50 or something next month. His point is very sound.

    hey junk if your going

    Posted by cwa82675 on 5th of Mar 2009 at 02:01 pm

    hey junk if your going to quote me, at least quote me  Tongue out

    When asked what could uyg go to this was my response...." you never know.  I remember thinking dxo was cheap at 8, then it went to 3 and I bought some then it went to 1.60.  If I think uyg is cheap at 1.60 it could go to .50....who knows.."

    I paraphrased you, and did

    Posted by junkmaylbox on 5th of Mar 2009 at 02:07 pm

    I paraphrased you, and did it badly :( No offense was intended. Don't listen to me, folks, I could be totally wrong with my estimates. I am saying how I see it :-)

    UYM

    Posted by junkmaylbox on 5th of Mar 2009 at 01:29 pm

    is also a good buy now, close to 8. It's not making new lows, and should double easily. It's one of the safest plays that I could find at the moment.

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