An ETF For Market Correction 一只参与市场调整的ETF

Major market indexes reversed to close at their lows yesterday in the face of bullish US-China trade talk news. This is important because the bench market index S&P 500 failed to break above last year's triple top levels. These levels are 2800, 2815 and 2817. US stock is likely to start a downside correction. The seriousness is still to be seen since the next support level for the S&P 500 is the 200 day moving average support at 2748 and is not too far away. A 50 S&P 500 points drop from here is approximately 500 Dow points. However ,if this level is broken, S&P 500 may have a bigger drop to 2631. A better index to play for the down side is Russell 2000 using the bear ETF TZA. TZA is now trading at 9.25.

The Russell 2000 failed to break it's 200 day moving average at 1588 yesterday after a huge 26.5% rally since December low. It is due for a rest. Since it rallied the most among market indexes, it likely will fall the most. TZA has formed a bullish Morning Star pattern. CCI has turned and gave an initial buy signal. Upside target is 10.19 initially, and may to up to 12.28 if market correction is getting serious.

面对利好的美中贸易谈判消息，昨日主要市场指数却反转而在低位收市。这很重要，因为基准市场指数标准普尔500指数未能突破去年的三重顶水平。这些水平分别为2800, 2815和2817.美国股市可能要开始下行修正。由于标准普尔500指数的下一个支撑位是200天移动平均线2748水平并且距离不太远，因此调整的严重性仍然有待观望。标准普尔500指数从现在水平下跌到2748约为50点，约相等于500点道琼斯指数。然而，如果这个水平被跌穿，标准普尔500指数可能下跌至2631。更好参与下跌的渠道是罗素2000三倍看跌ETF TZA。 TZA目前的交易价格为9.25。

自从12月份低点大升26.6%后，罗素2000昨天未能突破其200天移动平均线1588。它应该要休息一下。由于它在市场指数中涨幅最大，因此跌幅也将会最大。 TZA形成了看涨的晨星模式。 CCI已转向并发出初步买入信号。上行目标最初为10.19，如果市场调整变得严重，可能会达到12.28。