DRIP: Breakout Potential from Symmetrical Triange!DRIP is showing signs of a breakout from a symmetrical triangle pattern on the 30-minute chart.
Entry is set at the yellow line ($11.62) with the following trade parameters:
Stop Loss (SL): $11.42 (below lower trendline support).
Target 1 (T1): $11.97 (red resistance line).
Target 2 (T2): $12.33
Key stats
About Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares
Home page
Inception date
May 28, 2015
Structure
Open-Ended Fund
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
Rafferty Asset Management LLC
Distributor
Foreside Fund Services LLC
DRIP seeks to deliver -200% of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index. Unlike State Streets XOPan unlevered fund tracking the same indexDRIP uses over-the-counter derivatives to achieve its objective. As with all levered and inverse funds, DRIP should not be expected to deliver 2 times the performance of its index for periods longer than one day. Compounding and path-dependency can cause significant deviations over longer time frames, so it's best used for single-day tactical plays. It's worth noting that DRIP's index is equal weighted, market-cap weighting would require extreme concentration in a handful of major firms. As a result, DRIP exhibits a serious small-cap tilt and the elevated market risk that comes with it. DRIP's leverage factor only amplifies the potential for volatility. Trading costs should be taken into consideration. Prior to March 31, 2020, the fund provided -300% exposure to the same index.
Classification
What's in the fund
Exposure type
Cash
Bonds, Cash & Other100.00%
Cash100.00%
Trade Journal - DRIP, Feb 6 (long)Thesis
Crossed baseline recently, CLAMP is yellow (positive), correlation agrees.
Discovery
After entering a trade with BTB, I saw it correlated negatively to XOP, the oil and gas exploration etf. DRIP is a leveraged play on this symbol.
Correlation
+: BTB, XAGUSD, VIX
-: RUBUSD, XOP, UUUU
B
major outflow in energy could start soonan exodus in energy that has been expected as the price of oil could drop significantly may express itself as a short squeeze in DRIP. if we find a weekly higher low i would imagine holding the pivot price and aiming for upper horizontals is logical. if we fall beneath that pivot as resist areas abo
See all ideas
Summarizing what the indicators are suggesting.
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Displays a symbol's price movements over previous years to identify recurring trends.