Week 49 Major Markets Trending Update and Holdings review

Major Markets Trending

The trending has been affected by the last 2 days of trading (yesterday and Friday of last week). It is hard to say which direction we are going from here. So, caution is of most importance.

After yesterday’s close, we can see that the Russell 2000 has been impacted the most.

Holdings Review - Longs

EURL: The price of 18.19 is at an important resistance band of 18.50 - 19.50. So, will be interesting to see if it can break through that. I am a bit worried about the unfilled gap between 14.54 and 15.31 which needs to be filled at some point. For now, I will hold. Here is the chart.

GDXU: Price hit the 150-day and pulled back yesterday. My expectation is that it will pierce through that. I will hold for now. Here is the chart.

KWEB calls: Has strong momentum to the upside. The 150-day curve is also indicating a bearish to bullish reversal. This is my second trade in the same direction with the first one generating +50% gains. I think it goes higher from here. Here is the chart. I do worry about the unfilled gap below. But for now, it seems price has broken through.

XBI calls: Biotech XBI has been making a nice bottoming pattern for some time. It is currently trading between a channel of 76 - 86. My expectation is it breaks above from here soon. Here is the chart.

SLV calls: precious metals are looking attractive, and Silver tends to outperform Gold.

Holdings Review - Shorts

ARKK puts: Has been poor but holding along somewhat now. Here is the chart. I need to see if this is going to break down or that chart pattern is a bottoming exercise. For now, I will hold on to my shorts.

KBE puts: Banks are underperforming the rest of the Financials as well as the S&P 500 on a relative basis. Yesterday was a big down day and I think it goes more lower from here.

XLI puts: Bought on the thinking that it has gone up too much too soon and the rise has been steep. Expecting it to give back some now.

Hedges

SPY calls: short-term hedge play based on the down days it has had 2 days in a row. Expecting a small bounce back.

QQQ calls: short-term hedge play based on the down days it has had 2 days in a row. Expecting a small bounce back.