08/05 – ETF Trading – USO, SCO

USO closed just a penney lower yesterday. As such, we did not take a second short position in the etf trade. And since we’re using the signals for USO to trade, we did not take a second trade in SCO, even though it closed a bit lower. Updated charts are posted below.

Just a quick comment and my opinion about trading at the market close: when the price of an etf is bouncing just above and below the signal price in the final minutes of the trading session (like USO yesterday), I think it’s best to just let the trade go. We’re interested in taking the additional position at a significantly higher (or lower – depending on your trade) price than our previous trade. Better to wait for the next trading day.

We’ll scale in with up to three 3 trading positions. Take a second short trading position should USO close higher today – or take the second long position for SCO. Otherwise, our exit signals for USO are triggered when the etf price is less than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30. Trade SCO on the signals for USO.

All trades are at the market close. Please trade responsibly.

Join me every day as I offer new etf trading ideas for you to follow.

Updated charts:

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Can’t make a trade? Let Warren Buffett manage your portfolio – AlphaClone

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