05/27 – ETF Trading – USO, SCO, FXI, FXP

The market is moving stongly higher this morning, generating some good shorting opportunities. Consider taking a short etf position in USO or FXI should either close higher today and its RSI(2) > 90.

If you’re unable to short either etf, consider taking the inverse etf – SCO and FXP. However, follow the etf trading signals for USO and FXI. These are double inverse etfs – please trade carefully.

USO – The United States Oil Fund, LP (“USO”) is a domestic exchange traded security designed to track the movements of light, sweet crude oil (“West Texas Intermediate”).

SCO – ProShares UltraShort DJ-UBS Crude Oil seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of The Dow Jones—UBS Crude Oil Sub-IndexSM.

FXI – The iShares FTSE/Xinhua China 25 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 Index.

FXP – ProShares UltraShort FTSE/Xinhua China 25 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index.

We may take a second trading position in the next day or so should USO or FXI close higher and its RSI(2) > 94.

Otherwise, our exit signals are triggered when the closing price for USO or FXI is lower than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30.

All trades are at the market close. Please trade responsibly. Charts for USO and FXI are live.

This trading strategy is the RSI 90/94 Strategy found in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have only a few rules and you’ll be able to back-test and apply the strategies to the next trading day. With easy to follow trading strategies, clear explanations, and years of tested results, there is no better place to start finding new trading edges than in High Probability ETF Trading. Get your copy today and be ready for the next trading session.

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