New Major Upleg for UltraShort Dow

By: Mike Paulenoff | Sat, Feb 14, 2009
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Regardless of whatever carrot stick the Administration or Congress dangles in front of the equity market, my work continue to warn me that since the January 6 low at 49.60 in the ProShares UltraShort Dow 30 (NYSE: DXD), the price structure has entered into a major new upleg.

As I see it, the initial upleg of the advance ended in late January at 64.26, while the digestion of the upmove ended last Friday at 57.10. The first upleg of the next advance in the DXD ended at Thursday's high of 66.26, and the decline into Friday's session was the digestion period of the upmove from 2/06 to 2/12.

As I noted to subscribers on Friday, my work suggests that somewhere between 62.50 and 60.00 the next powerful advance will begin. The DXD got down to a low of 61.86 intraday and closed at 63.92. I would only be prepared to risk 61.10 to "be there" for the next upleg.

 


 

Mike Paulenoff

Author: Mike Paulenoff

Mike Paulenoff
www.mptrader.com

Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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