There is Beauty in That Decay

Leveraged ETFs such as NUGT (triple-long GDX, senior gold miners) and TZA (triple-short IWM, the Russell's small cap stocks), as well as FAZ (triple short XLF, financial sector) all reversed-split. Inside Market Chess Subscription Services on the private Twitter feed this morning, we are fleshing out strategies about how best to incorporate leveraged ETFs into your trading strategy, given the inherent risks many of those ETFs carry, namely variations of "decay."

Turning to the market at-large, we have seen a fairly sizable fade from where overnight futures were, pointing to what could have been another monster rally today. That sill may happen, but the likes of AAPL and even the biotechs are underwhelming again, in the red as I write this. 

Crude oil is bouncing and threatening another breakout from its grinding range, though holding these moves has been a huge sticking point for energy bulls for a while now, while natural gas is plunging into this morning's inventory report. 

To keep things simple, I am looking to see if the S&P can hold over the well-defined channel (light blue lines on daily chart of SPY, below) which we observes yesterday, stretching back to FOMC two weeks ago. If we fall back inside of the channel in a sharp manner, I expect recent bottom-fishers to scramble for the exits quickly.