Horizons Exchange Traded Funds 20180816

Well, good morning everyone and welcome to Friday morning. It's Stephen Whiteside here from theuptrend.com. And you're correct, I don't usually work Friday mornings and didn't plan to. Yesterday was a full moon and it looks like it could be a potential catalyst for a change in market direction. Futures are up on Friday morning. Certainly not expecting any trend changes on Friday. And I did get a few emails yesterday about Horizon BetaPro Charts, and so I thought we'd walk through those charts this morning.

 

Let's start off our presentation where we normally do, and that's looking at the VIX BetaPro S&P 500 VIX Short-Term Futures ETF (HUV.TO), or the fear, Index. Currently up at the top of the panic zones, ranked at nine. We were trying to get to $5 and 47 cents yesterday. Got as high as 5.46, so that didn't feel good. Taking some more money off the table this morning wouldn't be a bad idea. We're certainly nowhere near a sell signal on Friday. But given what happened yesterday that we ran up and failed just below our target, we want to take some money off the table today, and ring the cash register.

 

Looking down, we need to close below $4.58 cents on Friday. Not expecting that to happen of course. And that lower channel line's going to continue to move higher daily.

 

Looking at the BetaPro S&P/TSX 60 -2x Daily Bear ETF (HXD.TO), we're up at the top of the range here. Trying to break through last week's high, trying to break through the May highs, have not been able to do that this week. And now we're looking down, and the lower channel line is currently at $5.02 cents. We had a chance to take money off the table last week at 5.27, and we had the chance to do that yesterday, and so you've had opportunities to lock in some profits there.

 

The flip side of that trade of course is to go long the BetaPro S&P/TSX 60 2x Daily Bull ETF (HXU.TO). Not expecting to do that on Friday. And we need to close above 38.74. And of course if we don't close above that on Friday, then that upper channel line is going to continue to move lower daily.

 

Moving into the U.S. market, there's the BetaPro S&P 500 -2x Daily Bear ETF (HSD.TO)for the S&P 500. Couldn't take out last week's high. That of course is a bullish sign for the stock market, the fact that we put in a lower high for this ETF. We are looking for a close below 13.40 to kick us out on Friday. Next target to the upside is 14.45, and we hit that last week. Got as high as 14.42 yesterday. So put in a lower high for a Bear ETF is bullish for the market. And you can see there's the BetaPro S&P 500 2x Daily Bull ETF (HSU.TO), and we're looking for a close on Friday above 57.61. Of course not expecting that to happen, and the upper channel line will continue to move lower daily.

 

 

Looking at the Nasdaq, and the Nasdaq has done very well. On the downside so far it's held up fairly well, so we saw less excitement on the BetaPro NASDAQ-100 -2x Daily Bear ETF (HQD.TO) to the upside. We're currently looking for a close below $5.33 cents to give us a sell signal. We are trying get to 5.86. Have not been able to do that so far. So that's unfortunate.

 

And then of course the flip side of this trade is the BetaPro NASDAQ-100 2x Daily Bull ETF (HQU.TO) for the Nasdaq. And we need to close on Friday above $70.74. That's probably not going to happen. And that upper channel line will continue to move lower daily.

 

Looking at some of the sector ETFs, and the energy bear BetaPro S&P/TSX Capped Energy -2x Daily Bear ETF (HED.TO) is making higher highs, which is not a good sign for the energy sector. We need to close on Friday below 14.67. Not expecting that to happen. And there's the BetaPro S&P/TSX Capped Energy 2x Daily Bull ETF (HEU.TO) for the energy sector looking for a close above 4.01 on Friday. And of course if that doesn't happen, that upper channel line's going to continue to move lower daily.

 

Looking at the gold sector BetaPro Canadian Gold Miners 2x Daily Bull ETF (HGU.TO), still on a buy signal here. Need to close below $18 to give us a sell signal on Friday. And for the BetaPro Canadian Gold Miners -2x Daily Bear ETF (HGD.TO) for the gold sector, we need to close above $4.36 cents on Friday.

 

And last up is the Horizons Marijuana Life Sciences Index ETF (HMMJ.TO), there's only one side of this ETF which is the bullish side for the marijuana sector. Generated a sell signal on Wednesday. Fell through to the downside on Thursday. So certainly not a good sign for the marijuana sector.

 

Okay folks, that is all for this morning's presentation. Now just looking over my shoulder, according to Bloomberg the Dow's up 220 in the premarket and the TSX 60 is up nearly five points. So that is certainly a bullish sign for the open on Friday. Certainly those type of numbers do not change the overall trend, but it could be the start of something, given that yesterday was a full moon.

 

Have a great day folks, and the next time you'll hear my voice is on Sunday, and at that time we'll take a look at Protecting Your Portfolio.

 

Stephen Whiteside

 

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