To The Moon

With the indexes ended in the RED yesterday (26 Sep 2023), I would be assessing how the ETF option have been doing.

Below is the Top 10 Most Active Options By Contracts on 26 Sep 2023.

I would be more interested in ETF option which have a lower Put-Call ratio, hence I would be assessing these 3 ETFs closely to see if they are tradeable.

A low Put-Call ratio would mean that investors sentiment on these ETFs are pretty high.

$iShares 20+ Year Treasury Bond ETF(TLT)$

Based on ADX (Average Directional Index), TLT ADX is between 20 and 40 indicating a developing trend, but its +DI is below -DI which suggest that it might be going through a bearish trend.

But with the yield on treasury bond increasing and now 10-year yield is above 4.5%, I believe TLT have the potential of a higher gain over this week.

$SPDR Gold Shares(GLD)$

Based on what we can gathered from RSI (Relative Strength Index), investors might be looking to load more of this ETF as part of defensive strategy to overcome market uncertainty brought by recent events and happenings.

Even though GLD did not fare well in both the ADX (showing weak bearish trend) and it is currently trading below the 50-day MA period.

This ETF would still be one of my choice to be part of the defensive strategy to guard against the market uncertainty.

$Nasdaq100 Bear 3X ETF(SQQQ)$

SQQQ is currently trading below ADX 20 and should be in a weak trend, but its share price is currently trading above the 50-day MA period.

This would mean that there might be some volatility on this ETF as it could go downside once market start to show signs of pickup because the U.S. Fed government shutdown crisis is reduced.

Summary

With the 3 ETFs that I have shared, I believe different indicators have showed different signals, so this might require more analysis.

We should always look out to how the market is reacting to important news and major economic events. As based on past experience, these events could move the stocks in a different direction even though we could have a good indications from some of the technical indicators we used.

I would take a caution approach and monitor the price action of these 3 ETFs to see if there is any potential to load and profit from them.

Appreciate if you could share your thoughts in the comment section whether you think these ETFs are worth taking a look today based on what we have experienced over the last 2 day of trading this week?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.