ETF Trading Research 10/19/2017

Posted October 19, 2017

For those of you new here, I most of the time have the ETF Trading Research report out by 8PM PDT, and it comes by an RSS feed, but you can look at the report here sometimes before you get it in your mailbox; https://illusionsofwealth.com/category/etf-blogs/ This is also the same link if there are any technical difficulties.

Today’s Trades and Current Positions (highlighted in yellow):

Yesterday I gave some support and resistance levels for metals and mines. I’ll add to it today.

Economic Data For Tomorrow

Existing Home Sales is the big one tomorrow. Of course any bad data in housing means nothing to this market.

http://www.investing.com/economic-calendar/

Stock Market

Market got a little scare overnight, but came roaring back, mostly fueled by some good job and manufacturing data. It was a big enough down move though to get us short some ETFs. We’ll see if the run into the end of the day is serious enough to hold or not after the open tomorrow. If we get a higher open, I do expect it to reverse by end of day, the opposite of today’s action. I just have a feeling this weekend we are going to see some trouble somewhere, most likely with North Korea as they are long overdue. It’s really kind of surreal living in San Diego and imagining a country threatening to wipe us out. I don’t think it’s going over well with the Trump administration either and definitely not Trump. This could be the October surprise of the wrong kind for the markets. It also makes me want to have a piece of metals still.

Foreign Markets

All three were in alignment today and we should take this serious tomorrow for RUSS, BZQ and YANG. So many times they gap up and then offer no trade and retreat. I didn’t want to play that game with them today. But I did notice the weakness in BRZU and YINN and BZQ/YANG should be on your radar.

Interest Rates

TMV was a one day wonder, false move. It is still green on the weekly though, so will wait for TMF with a red weekly on TMV. I have more faith in TMF in the months ahead than I do TMV.

Energy

We were happy we waited on UGAZ yesterday, got out of DGAZ about flat and late in the day rode UGAZ up. 2.90 level is minor resistance, but through that we should profit by getting to 3.03 and maybe lock in some profit for day traders up there on half shares. Swing traders holding out for 3.40 still. Maybe as high as 4 by next year.

UWT has gone red and we got long DRIP, but only DWT in the trade the opposite of a red weekly. It’s up a hair. If you did take that trade, I would scalp for small profits on 1/2 shares and keep a stop at break even. That’s the best way to play these. At least with this volatile a market. Heck, even a 1/2% a day is still a 100%+ year.

I will repeat for swing traders though, buying any dips in these should continue to work for us on both of these. Look at the support levels above for best entries.

Precious Metals and Mining Stocks

USD/JPY didn’t offer us much of a trade in metals and miners today. See what tomorrow brings. Perfect scenario is we get one more smack down lower. For silver, over 17.50 and it should take off.

Thursday Afternoon Price

Wednesday Price

Tuesday Price

Monday Price

Friday Afternoon Price

Hot Corner (the biggest movers – 3% or more – or new ETFs that are green on the weekly – those in bold are consecutive days in the Hot Corner):

RUSS, YANG, DWT, USLV (DRIP new green weekly’s today)

Cold Corner (the biggest move lower 3% or more that are green on the weekly and or weekly/monthly or turned red on the weekly – those in bold are consecutive days in the Cold Corner):

DSLV, UWT, YINN, RUSL, (UWT, TQQQ, SVXY new red weekly’s)

Green Weekly’s

These are the ETFs that have turned green on the weekly and the dates they turned green. This is used for tracking your percentage gains so you know when to take profit for each ETF per the Trading Rules profit taking guidelines. These green weekly’s work as you can see from the %Gain/Loss tables. You won’t get the exact high with your trade but you will also be out typically well before they start to fall again or turn red on the weekly. Your best way to profit with the service is stick with the green weekly trend and take profit while using a trailing stop on remaining shares. Also, if these green ETFs are up for the day at the open, they offer the best scalping opportunities. I am always fine tuning this section so if there is confusion at all, email me and be specific and I’ll be happy address.

I know I have said this many times but it is worth repeating; If you stick with the green weekly trades your odds of profit increase as there is more risk with the day trades. I call the day trades with the intent of catching some runners, so will get a few 1% stop outs but eventually catch the 5% to 10% or more runners. The important part of the list below is that the longer the ETF stays on the list (the one’s at the top of the list by Entry Date) the more likely it is to turn red on the weekly and the opposite ETF comes into play as a long.

Sell half shares on a spike up on any ETF you are long, even if goal is higher. Spikes higher are almost always followed by moves in the opposite direction. Try and get out with a market order quickly before the quick move back lower. Lock in that profit!

Doug Eberhardt