ETF Trading Research 4/22/2018

 

 

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

Friday we got back lown many of the ETFs we want to ride higher at a lower price, which was the plan on Thursday when I flipped short, but got shaken out with a piece of news. Other than that bit of weakness, we are on track, concentrating on getting the next lower price for these ETFs and the move to 2750 at a minimum for /ES. I also non-officially said TVIX was in a range and those who bout low 7’s would have done well seling 7.50. We closed 7.46 and SVXY has triggered red on the weekly, so TVIX still may have more in it, but it seems the news of the weekend is North Korea saying they are cutting back on their nuclear program and markets so far are looking at this favorably. Still think we go lower as /Es is only up 5.50 points to 2677. See where we are Monday morning and if we get our wish. More below on markets, metals and oil and nat gas.

 

Economic Data For Tomorrow 

Existing Home Sales at 10:00.

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

Stock Market 
While I didn’t concentrate on TVIX on Friday, we did get in at what I think are decent prices on LABU as we are buying below where we bought last time and TQQQ may average out just above our original buy for the ride higher. Meanwhile we’ll swoop up the rest of RUSL and SOXL, which has been beaten down hard, and also dip into BRZU and YINN. Those are the 6 I want to ride higher. Others like UDOW, SVXY, FAS will do just fine too.
Foreign Markets
Still looking to buy dips in RUSL, YINN and BRZU and we started with RUSL because it has been beaten down the most and has the better opportunity to jump higher.
Interest Rates
Was a sharp two days up for TMV and it may take a breather.
Energy
Got out about flat on DWT and DRIP, but they may be ready at some point. UWT and GUSH are the one’s still showing strength overall.
We got some back in the UGAZ trade and went home flat hoping for a dip by Monday morning. I think the best approach is to go in 1/2 shares, wit for the typical market maker “pushing around” that almost ALWAYS seems to come these days, and trade with them by catching the dip and riding nat gas up to 2.79 area again.
Precious Metals and Mining Stocks
We have to lean short metals and miners now and will look to get long DUST and DGLD with an eye on DSLV and JDST Monday morning. Gold is down at present on Sunday and dollar up a nickel. GDX to 20 possibly.  
Green Weekly’s

These are the ETFs that have turned green on the weekly and show a trend has developed. Your best way to profit with the service is stick with the green weekly trend each day and take profit while using a trailing stops. 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 more likely it is to turn red on the weekly and the opposite ETF comes into play as a long. This will be tracked more when we automate the service.

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!

Wait for the sign of a positive day to go long anything beaten down, I think the odds swing to your favor.

New way to trade beaten down ETFs; The way that trade would work, and I really think it should be a rule from now on NOT to trade anything trending down until it reverses, is we would buy at the open if it is POSITIVE or GOES POSITIVE during the day. Then we would look to profit on 1/2 shares over and over, day after day until we get the red weekly signal on the opposite trade that could turn into bigger profits. The stop would be if it goes negative for the day. The rule of keeping a stop if it goes negative for the day is a must. Lastly for this type of trading we need to not be afraid to get back in if it goes positive once again. Sometimes market makers will take an ETF negative and then reverse it right higher again because they know if it goes negative many exit. So we have to be willing to risk a few in and outs when it does this up and down move around that potential stop out area so we don’t miss the ride back up. That’s just part of trading and not a big deal. But no matter what, if it breaks to yet another lower low because you didn’t get out after giving it a little more wiggle room, you are more than likely further from the original stop out when it went negative and you are out, waiting for it to go positive again before you get back in. You are simply buying into strength.

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.

Recent Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt
0

Start typing and press Enter to search