Look For A Buying Opportunity In This Inverse ETF (NYSEARCA:TYP)

Following an early morning gap up, stocks plummeted to close near session lows, on higher volume. All five major indices fell at least 1.0%, with higher beta issues leading the decline. The small-cap Russell 2000 and the S&P MidCap 400 plunged 2.4% and 2.0% respectively. The tech-rich Nasdaq slid 1.7%, while the S&P 500 and the Dow Jones Industrial Average fell 1.3% and 1.1% respectively.

Yesterday, the Direxion Daily Technology Bear 3x Shares ETF (NYSEARCA:TYP) formed a bullish engulfing candle on burst in volume. An engulfing candle is formed when the present day’s price action completely “engulfs” the previous day’s candlestick. A move above yesterday’s high of $11.68 could present a buying opportunity in this inverse ETF. We are placing TYP on the watchlist. Trade details are posted in the watchlist section of the newsletter.

TYP

FAZ formed a bullish, wide ranged reversal candle yesterday on a pick up in volume. Yesterday’s low undercut the two-day low on the open and reversed to close near the highs of the day. We are placing TYP on the watchlist. Trade details are posted in the watchlist section of the newsletter.

FAZ

The commentary above is a short excerpt from The Wagner Daily, our nightly stock and ETF swing trading newsletter. Subscribers to the full version also receive specific entry and exit prices for all swing trade setups, an additional section dedicated to individual stock trades, and access to our Live Trading Room. To learn more about our swing trading strategy, please visit our swing trading blog.

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