Jul. 12 at 12:53 AM
$SPY $SPXU If I erase March and April from our memory, a pullback to the W-EMA20 line is a possible scenario. 589.05 is about 19.4 for SPXU. My average is 17.77 so SPY 607.68. At least as of today's closing price, if I own the average of W-EMA10/600.25, SPXU 18.3, I don't think there is any need to worry yet. With SPY closing above the 11-week W-EMA5 line, there is nothing left for SPXU holders to do but steadily average down and be patient. In my case, I am hedging with
$SPYU which has a 3% yield. The SPYU:SPXU weighting is 2:8. SPYU's Maginot Line is usually the W-EMA5 (612) line. Therefore, I plan to buy SPY up to 618~612(42.89~41.2), and when the Maginot Line breaks down, I consider it a bearish signal, record a loss, and exchange it for SPXU.