These are the Yin and Yang, bulls or bears double inverse etf’s. They are often repriced to keep the nominal price at a tradable level, so be careful to make direct comparisons with previous charts. We have been too early often but are last blog was spot on.

The HXU, that is U for up, on the left is pretty well a replica of the TSX but not quite. In any event it has probably just reached the point of recognition. If so than it should go down about as much as it already has. If not than perhaps we will need a >6oo point drop or something like that.

At this time you, of course, want to own the HXD, D for down as it acts inverse to the market. There is nothing much between here and $25 to stop this etf.

Owning the HXD, my only personal position, has not been enjoyable the last year or two. I have been dead wrong on this one but you have to take positions in the context of the present and right now I think the HXD is once again an excellent buy. We have dropped a little below the magical $8 level that it hit after the March2009 lows but the RSI is lower than it has ever been for the past 3 years.

The exact opposite applies to the HXU which looks , as it should , exactly like the TSX itself.