ETF Trading Research 5/30/2017
Current Positions and Today’s Trades
Today started out slow but we ended up adding 5 positions. I said by end of day I might have over traded here by taking all 5 home, but JDST has a chance at a breakout here and DWT looked good from a chart perspective. TMF, FAZ and LABD have all turned green on the weekly and LABD got us the best return. Because we also had a few of these trigger I decided to lock in the 1.9% profit we had on remaining shares of TQQQ. The risk is more in DWT and JDST with them not being green on the weekly. They are however both green on the monthly still.
Pending Home Sales is the market mover tomorrow and Chicago PMI important. FOMC member Williams speaking twice.
YINN had another up day with RUSL and BRZU. I’m not quite sure if money will flow to them if we get a pullback in U.S. stocks or if RUSS, YANG and BZQ will be in play. We’ll just have to see what the market gives us.
Interest Rates
TMF has triggered green on the weekly again and should give us a little run.
Energy
Nat Gas in one day made too big a move to really like it here. Usually we get a reversal trade first but it is a buy tomorrow at the open or a subsequent move over 22.58. A move over 22.78 confirms the trend.
It took till end of day but DWT triggered as a buy the dip potential trade here. Will hope to take quick profit as oil reports and OPEC always look each week making it a tougher trade. I know some of you don’t even trade UWT or DWT because of this.
Precious Metals and Mining Stocks
Gold is down a buck in Asian trading with Chinese markets closed for a holiday again. Currently -1.10 to 1261.80. First break of 1255 should get us to break 1245 if in fact we are going to continue lower. The dollar was down today but JDST up so correlations are a little messed up right now.
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):
DGAZ, DRIP, LABD, JDST, DUST (TMF, FAZ, LABD, TZA, DGAZ all new green weekly’s).
Cold Corner (the biggest moved 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):
LABU, UGAZ, GUSH, NUGT
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. It is also used for tracking the percentage from high to keep a stop on remaining shares. 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 before typically well before they start to fall again. 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. You’ll notice in the last column on the right it says “Current percentage from high.” This is your normal stop out for any ETF where I don’t specifically call it per the Trading Rules which lists the trailing stops for each ETF. It is a Trailing Stop percentage from the high and I have noticed the pattern that the closer it gets to 5% the sooner the ETF turns red on the weekly.
