I FINALLY entered my buy the dip stock: $TZA
I bought $TZA today at close after pitching it as my buy the dip stock over the next 6-12 months. $TZA is a bearish ETF that mimics $IWM. When $IWM increases, $TZA decreases and vice versa.
I have been very patient on my entry to this position until a re-test of the weekly 20SMA and this downtrend line. We finally hit the downtrend line today and only a few dollars away from the weekly 20SMA (Green line). I utilize stage analysis in my high time frame strategies as a stage 4 decline often tests the 20weekly SMA before continuing down.
This is a longer term swing for me as Powell stated the bear market is only beginning today (summarized) in his press conference.
If you want to learn more about this position, click the link above for a full writeup on why I believe $TZA is a great swing trade over the next 6-12 months.
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