06/04 – ETF Trading – USO, SCO

Markets continued to move higher yesterday and so did oil.

We’re still waiting for our etf exit signals to trigger for our short trade in USO. The inverse, leveraged etf trade is in SCO.

Our etf exit signals are triggered when the closing price for USO is lower than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30. We’re using the latter signal. We’ll exit the leveraged trade in SCO using the signal for USO.

In the event that USO moves higher from here, take a second short position only if the RSI(2)>94 and the shorting price is higher than our initial shorting price

All trades are at the market close. Please trade responsibly. Updated charts are posted below. Have a great weekend!

This etf trading strategy is the RSI 90/94 Strategy found in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have just a few simple rules and you’ll be able to back-test and apply the strategies to the next trading day. Get your copy today.

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