ETF Trading Research 5/30/2018
Today’s Trades and Current Positions (highlighted in yellow):
Something my father gave me on Memorial Day. It’s for those of you who, like me, sit in front of the computer all day. While it is better to get up and do jumping jacks or skip rope every so often, or at least get up and stretch (set a timer reminder?), these can still work. He has been wearing while in front of the computer since he was 47 and had a triple bypass. They must work (that or the red wine and exercise and eating well, lol) because he is 83 now and doing great overall. http://www.berkeleywellness.com/self-care/over-counter-products/article/rough-guide-compression-stockings
Don’t look now, but the dollar is down lower and soon to fall under 94. today, JNUG and USLV should have got us more than 3.55% and 1.94% on the move back up. I expect a bigger day tomorrow from them as long as the dollar falls under 94.
I expect a bigger day tomorrow in UWT and GUSH and hope to buy back GUSH lower pre-market or after the open on any move down. While we did lock in profit on GUSH, I think both will give us more as oil moves up to new short term highs and to that 75-76 range. Long way to go. Data after hours was 1.001M for U.S. API Weekly Crude Oil Stock. More than I wanted and we’ll see what tomorrow brings. I do think we are in buy the dip mode with it.
DGAZ did end the day up over 1% but couldn’t get past 24.43 as it traded in a range all day. The last time it fell to the 24 level I didn’t buy again but put the money into UWT for a swing and will add if it falls. Still like DGAZ to go higher though and Nat gas to 2.75. Break 2.75 and we might have a runner. Ideally.
Stuck with the buys Friday and Yesterday and we were rewarded today with a nice move up. We did take profit from LABU on 1/2 shares and will try to buy lower tomorrow if we can. /ES 2750 still the goal. But we should still move higher into the summer. This last month after the prior month of Fed selling towards the end started out like a rocket ship higher. Expect the same as a fresh month seems to be keeping the Fed at bay. At some point the Fed will start selling again, and we will have to be leary of that and lock in some profit at resistance levels.
BRZU and YINN were up but have work to do as they sit in the Dog House. They can’t come out of the Dog House till they behave. We’ll work our way out of them.
Economic Data For Tomorrow
Huge day of data tomorrow. I expect a tough day of trading and recommend taking profits quicker. Come June 1 things should get easier again.
http://www.investing.com/economic-calendar/
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!
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.
