ETF Trading Research 6/14/2018

USD/JPY still keeping the market on life support post Fed. I don’t think it lasts here and we’ll try and capitalize on any fall and profit before we get long for the bigger move up into the summer. That’s where risk vs reward is rewarded I think. See what Japan does overnight and the USD/JPY and its potential for a move over 111 first before under 110. /ES to 2800 first before heading to 2750 or below. 2700 and 2750 the range of support we’ll try to go long if this works out.

BRZU broke that 20 support and fell to a lower low than yesterday. No real reason for it except the strong dollar killing all these long the market foreign ETFs. They will however become buys once that dollar stops rising. We really need to pay more attention to them and the dollar.

See above on oil. Not sure if we get much more up on it for now. See how we do with DRIP. Looking for 3% to 5%.

DGAZ is poised to go higher. Nat gas breaks 2.80 and 2.60 is target.

JNUG finally hit a higher high over 14.43 but closed lower. Still a good day for it and especially USLV considering the dollar had such a huge day. Just a small sign of what’s to come no matter what happens short term.

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.