ETF Trading Research 11/27/2017

Posted November 27, 2017

More in a few minutes.

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):

The Red Weekly Opposite is still paying off well for us and I think our conservative overall approach is working as well. I even got more conservative at the close today with some mixed signals and lots of data tomorrow. We got profit from LABU, YANG and DRIP with the Red Weekly Opposites and a small loss in JDST with the middle of the night news of a “rumor” of a North Korea missile launch. Still like JDST though.

Economic Data For Tomorrow

Lots of data and speakers tomorrow. CB Consumer Confidence at 10 and Treasury Secretary Mnuchin late afternoon with API Weekly Crude Oil Stock. Total of 3 Fed members speaking throughout the day.

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

Stock Market

We have to be under the impression that the tax reform will be passed and markets still have a leg up. But there still is some uncertainty and I want to be cautious going short. As far as going long, for some reason there was weakness in financials and FAZ triggered green on the weekly and is a buy in the morning if positive. I’m not giving it much credence overall though. Food for thought.

Foreign Markets

YANG we went long and sold half for 1.19% to lock in some quick profit. BZQ is on watch and RUSS should be if oil falls more.

Interest Rates

I’m expecting anymore strength in TMV to get TMF to go red on the weekly and get us long TMV. It fits with my gold lower scenario as well.

Energy

We would have sold DGAZ on Friday on that smack down and now have ridden UGAZ up 10% today if we used our buy both sides of a trade option. Still thinking about that, even with UWT/DWT it might work now if oil had one more leg up towards 60. But it might be too late for that.

DRIP got us some profit and we are waiting on UWT to go red and buy DWT now.

Precious Metals and Mining Stocks

Metals and miners are all over the place right now as we got some retracement targets hit in USD/JPY at 111 for 505 and the dollar at 61.8%. This bodes well for JDST as long as there are no more North Korea rumors.

Monday Night Price

Friday Night Price

Wednesday Afternoon Price

Tuesday 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):

UGAZ and DWT overall moved up today and you can see DGAZ and UWT were 2 days in a row on the hot corner. We really need to pay attention to the hot and cold corner.

Yesterday;s:

DGAZ, UWT

Today’s Hot Corner: UGAZ, DRIP, DWT, YANG, RUSS, LABD (FAZ new green weekly)

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):

DGAZ, GUSH, UWT, YINN, JDST, RUSL (YINN and GUSH 2 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