And here to finish it off is the HXU. We hoped to buy it at about 7 and then sell it at around 14, neither points were reached so we missed the boat (basically for not understanding the non-linear nature of these products). The idea was good, execution not so good.
It is always nice to have an opinion on the market , but without an instrument to act it is of little use. So here is our old favorite HXD (do not forget 2X leverage and not good in a non trending market).
When in doubt look at the inverse. Lovely a-b-c, ready to move up any moment. Here C is a 5-wave affaire, better even it has a 5th wedge to finish it in the next few days if not already. Most positions were sold at about $34, too early as it turns out but still profitable. Here is a second chance.
Not to belabor the point but here are the comparable charts for the DAX and the AEX. The DAX is realy nice in that the B-leg of the flat is very very clearly a B-leg, in which the b also subdivides as it should. No further comment.
Time to diversify??
Just to compare the two, here is the S&P. Unlike the TSE it has , so far at least , stayed within the par. boundaries (red) quite precisely) Waves A and C (purple) are vector equal but also equal in time and amplitude, precisely in fact. And even though we are not even close to the 200-day moving average, the distance from the low at the devilish 666 level to the high of 875+ works out to 31,3% (more than historically for a wave 2) Both the RSI and the MACD are already dropping. The wedge is much clearer than on the TSE and does have a completed look. Also, as yet we have not made a new high since Monday. The only remaining fly in the ointment is that as a C-wave there should be 5 waves , that is not crystal clear.