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Direxion Daily Energy Bear ETF (ERY)

By:   The Oxen Group
  • 2009-02-07 13:20:00 GMT
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On Thursday, The Oxen Group wants to approach the Oxen Buy Pick a little differently.  A pattern we are noticing is that economic data is moving this market no matter what other fundamentals and technicals may be out there. Tomorrow, the day will be ruled by unemployment figures coming out from the Labor Department. The estimated number is 9.6%. If we hit that or are below, then the market is going green. If not, we are going red the whole day. It all depends on that 9:30 AM announcement. The oil market, as well,
will move with this announcement. It is hard to predict which way it will swing. If we were betting, we would go a miss higher and into the red, but its impossible to know for sure. Therefore, if it misses and it is higher you want to buy Direxion Daily Energy Bear ETF (ERY). This ETF will inverse energy and gas stocks that will be hit by the increase in jobless as that means less demand for oil and gas. On the other hand, less unemployment than expected should be a catalyst for the market with Direxion Daily Energy Bull ETF (ERX). Either one is a 3x ETF and will have some serious movement. We know that the oil market
depends on this as Asian oil prices had no movement whatsoever, as analysts believe the employment rate lingered over the market. Once the numbers come out, if it is positive and you buy ERX. Since ERX is undervalued and been sold off it will probably jump pretty quickly and then pull  back. If it is ERY and the numbers miss, we believe getting into the stock as quickly as possible is good because it is neutral. Check back between 9:30 AM - 10:00 AM to see what we chose.



Entry: Recommend buying  within first 15 - 30 minutes if ERX, first 15 minutes if ERY.
Exit: We recommend exiting after a 3-5% increase.
Stop Loss: We recommend a 3% stop loss on all buy in prices
Upper Resistance: N/A
Oxen Rating*: 5

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The Oxen Group
The Oxen Group is a financial information and analysis firm. We provide educational, relevant investing articles, breaking news, stock picks, earnings previews, expert analysis, and more. The Oxen Group is striving to be your source for financial information. The site is run by David Ristau. David ...

Disclaimer:
Our content are intended to serve as a discussion center for thoughtful users who make their own investment decisions, with or without the help of a broker.  The Oxen Group encourages its users to carefully examine their investments before placing them. The ideas discussed on this site are simply ideas and the site will not be held accountable for any losses or gains that one accrues, if any way linked to the ideas on the site.


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