Just in case the triangle scenario in the TSE is correct we should get prepared to play, not imminently but in say a month.(by the way, this applies to the S&P as well). What you want to do is buy at the low and ,with the near certainty that you will return at least to the apex ,chose the highest beta instrument to get the best bet for the buck. Ignoring options as not everyone can play, that is the HXU. Horizons Betapro Tse Up, 2x leveraged, as this thing is non-linear and path dependent it is a little tricky to figure out what the low would be. For this the XIU ,the non leveraged version, is pretty straightforward.
Wave 1 is about 3 points and the triangle measures about 4, so on average 3.5 points, and as we closed near 14 that gets us to 10/11 or a drop of about 25%. Applied to the XHU, double of course gives 50%.
As the lastÂ high trade was at $11.58, lets call it $12, that would give us $6 as the low point to buy. As it will return to say $11, not $11.58, as these things behave in an asymmetric way you have a risk /reward potential of 80% with 100% confidence, it may go a lot higher. It may be a good idea to put your order in in advance, as if and when we get there, Â you may lack the courage or conviction to pull the trigger. Also this could be wrong, so watch it progress over the next few weeks, you can always take the order out, no harm done by missing the boat.
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