YINN & YANG Market Cycles and Ratios YINN LONG nowThis weekly chart of the YANG /YINN ratio explains the rationale of the demonstration of the market cycle over the period of a few years as it relates to taking a swing trade in one or the
other and finding the likely pivot points based on resistance and support as static levels or
importance. Dynamic levels using an anchored VWAP and also a Bollinger Band are used to
support analysis and finding pivot points of importance. This is meant to be a methodology of
decreasing risk while optimizing reward. The same methodology could be deployed onto
a shorter time frame of 120 minute time frame to zigzag more often with greater precision
and potentially achieving greater profits over a given time interval. An optimal reversal on the high side is a confluence of the horizontal resistance /supply area with the upper Bollinger Band and the uppermost of the anchor VWAP bands.
YANG trade ideas
YANG ( a 3X leveraged inverse China megacap ETF ) LONGYANG on a 240 minute chart had a reverse head and shoulders pattern last summer. Price rose
over the neckline in November and hit an increased trend angle at that time. With a set of
VWAP bands anchored to the neckline cross, TANG had pulled back twice to the mean VWAP
where it found support, the latter of which was this past week. While price is currently at
15.5, I could reasonably forecast another rise to the second upper VWAP bandline at 18.00 or
about 16% upside. Price rose more than 4% today and 20% YTD for January.
Fundamentally, China is in a recession. Additionally, the terror and tension in the Red Sea
has increased shipping costs and diminished shipping volumes through the Suez Canal a
a major gateway to the Eurozone markets or even Western Russia. The CCP has pleaded directly
to Iran about this as the whole situation is worsening the China economy ( among others)
The idea of China launching a gold standard currency seems to be out of the news at least for
now. What is still on the table is Chinese interests in Taiwanese reunification. Any military
action would basically flush Chinese stocks into nothingness because a trade war would ensue
if not WW III. This lingering in at background is a drag on the China stocks.
I see YANG as a safe bet now with an entry just above VWAP with a stop loss above it
and 18.00 for the target.
YANG China Leveraged Bearish LONGYANG benefits when the China factories slow down and the economy stagnates
which is the present situation. The weekly chart shows YANG at its highest before
and after covid in 2019-2020. The volume profile shows over the 3+ years most shares
have traded at the present price levels. Price is rising above the POC line of the
volume profile and approaching the long term mean VWAP. The RS indicator shows
sideways strength movement in the mid-ranges. The MACD is curling upward over
a low amplitude histogram. The Asexome Oscillator is sideways. Overall, I will place a
long trade here and then supplement it with an add when the trend direction is stronger
and the Average Directional Index gains amplitude.
Long YANGI am seeing a swing trade opportunity on the daily MACD setting up to reverse into positive momentum.
Look for YANG to cross by this Friday or early next week and carry the momentum out for maybe a week.
Daily support is about $12.34, watch this resistance zone carefully, if YANG breaks through could potentially melt up quite a bit, next resistance zone is not until $19.55, this is unlikely but is possible given current S/R zones.
I am expecting YANG to bounce off of the daily resistance and begin consolidating between the daily support and resistance.
Direxion Daily FTSE CHINA Bear 3x - bullish "Head and Shoulders"Direxion Daily FTSE CHINA Bear 3x Shares forms bullish "Head and Shoulders Bottom" chart pattern
"Head and Shoulders Bottom" chart pattern formed on Direxion Daily FTSE CHINA Bear 3x Shares (YANG:NYSE). This bullish signal indicates that the stock price may rise from the close of $9.29 to the range of $11.20 - $11.70. The pattern formed over 28 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend.
The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.
Price Target 1: $11.20 - $11.70
Price Target 2: $16
Price Target 3: $20
Price Target 4: $30
YANG | My Favorite Play | LONGThe fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes). The index consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange ("SEHK"). The fund is non-diversified.
YANG China 3X leverage Bear ETF UptrendAfter uptrending from a double bottom ealier this month,
by the volume profile YANG looks to recover to 26.85 which is also a good 50% retracement of
the down trend. Moreover, the uptrend could extend to a second target about 32.
This could be a good swing long setup with a great reward for a small risk if setting
the stop loss just below the POC black line at 17.25.
Guangzhou, world’s manufacturing hub, on brink of lockdown.After rumours last week of China about to announce plans for a recovery, we now have news about Guangzhou being locked down for Covid.
This is a BEAR ETF, meaning the worse things go for China, the more this ETFs price will increase. It is triple leveraged so can go down even more quickly than it rises, so any buyers beware.
More just to let people know that ETFs like this exist so you can effectively take a position against economies (in this case the FTSE China 50 Index) as opposed to individual stocks in a market.
It will be interesting timing just before Christmas. Already hard enough I would imagine getting goods shipped out of there in time for Christmas.
One that could be interesting to watch.
YANG - China Bear Fund 3x leverageThere are numerous headwinds to the Chinese economy and normally I would say the CCP would be able to manipulate the mechanisms needed to keep stability, but not this time. This time it is different due to conflicting policies and factors outside of their control.
You have their 0 Cov policy which is causing widespread business disruption as the Chinese vaccine dose not seem effective against omicron and B.A2 variant.
You have them needing to strengthen the yuan due to the dollar ripping higher by selling USD but, they need the dollars to service debts and there is a dollar liquidity crisis which means they need to hold on to every dollar they can.
You have the ag sector not fully recovered from decimating their swine herd due to Swine Fever and crops disrupted due to last year's flooding plus a global fertilizer shortage.
Finally you have it as a bet that an autocratic regime, governed by a single man who has a record of shooting the messenger, to not respond to economic crisis nimbly, imaginatively and effectively.
Entry over the week of 4/25, averaged in at 20.40. Good luck and god speed.
DIRECTION DAILY FTSE CHINA BEAR 3X SHARESNot sure if TA is relevant here, though given the fear engulfing all markets this should continue soaring. Yang peaked at $6821 in 2010 following the GFC . A GFC in China has potential to send this, I don't even know where. This also holds huge risk, so do not make an investment based off of what I say. Never make investments blindly, based off what others say.
Update on Yang callsDoubled the initial, so I rechecked for another go at it. It is for Vegas gambling money afterall. $20 should be fine. The MACD has me a little spooked, but that's probably why the cheap price. I figure the high end is like $60 from last year, so it was a lot closer to the floor then the roof. Also it appears Evergrande things are finally happening.
Sold:
2 $16 21Jan22 calls @ $6.30 & $6.70 ($700 profit)
Bought:
3 $20 21Jan22 calls @ $3.50
YANG Calls Cause Evergrande CollapseTitle says it all. Fidelity finally approved level 2 options, yay, so to celebrate I went out to find me some calls to buy. I have a trip to Vegas in mid-January, and I need gambling money. I imagine something will happen to YANG from the crash in that time, so I grabbed two 16 calls to be safe for the 21st. I plan to sell three days before my trip at whatever price they are at. The way I see it, I should at least be able to scavenge most if I lose at 16. Plus, I can't feel too bad because that means China is doing better. (Go China)
1 YANG @ $18
2 $16 YANG 21JAN22 calls @ $2.93
Long Call OptionDue to the new and unexpected coronavirus outbreak in China and the lockdowns occurring within Bejing, I expect the Hang Seng index to come under pressure.
This combined with the floods in the south and Indian border tensions causing boycotts of Chinese goods may also contribute to Hang Seng downward movements.
To be clear, this is a very short term move, hence why a short term option has been used to reduce the premium cost.
Time for a China bear play after PMI printThe YANG China Bear fund should gain this week after an extremely bad print on China's manufacturing PMI, which came in 22% worse than expected over the weekend. China has been claiming economic recovery-- they say 90% of their state-run firms are back in business-- but the numbers belie those claims. Also go check out a BBC article titled "Coronavirus: Nasa images show China pollution clear amid slowdown" to see breathtaking photographic evidence of how the Chinese economy has ground to a halt. Markets are only just beginning to appreciate the scale of the economic impact of this thing. It's going to be bad.