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:

Disclaimer:The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

—–

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

• 03/29 - ETF Trading - USO, UCO Put USO on your watch list today; USO closed lower yesterday, generating an etf trading opportunity. Consider taking the first trading position in USO should the etf close lower today. For the leveraged trade, consider UCO. However, follow the etf trading signals for USO. UCO is a "double" etf -......
• 08/03 - ETF Trading - USO, SCO Oil closed higher yesterday, generating an etf shorting opportunity. Consider taking a short position in USO should the etf close higher today. If you're unable to short USO, consider taking the inverse etf - SCO. However, follow the etf trading signals for USO. SCO is a double inverse etf -......
• 06/23 - ETF Trading - Gains on USO, SCO - FXI, FXP Our etf exit signals for USO triggered yesterday and we made a small gain on our short trade. We gained .80% shorting USO and we gained 1.38% on the leveraged trade in SCO. Still a winning trade even though small. We'll continue to wait for our etf exit signals to......

• Tips for Investing Online The concept of doing your investing online through the use of an online web portal has truly revolutionized everything that financial trading is all about, especially in stock exchanges and in the FOREX market. Availability of resources like quick internet connectivity and portable laptop computers has made it even simpler......
• Advantages of Day Trading Historically, stock trading has been the domain of professional traders. Trading has been in essence a “private club” with restricted access. Day trading has changed that. For the first time, amateur traders have the tools (real time quotes and order execution) to compete with the professionals. Speed advantage of......
• Should You Buy A Tech ETF? Technology ETFs, also referred to as tech ETFs, are exchange traded funds related to technology. ETFs were first introduced in 1993. Because they are affordable, flexible, tax efficient, many investors are taking the ETF approach to investing. If you see the benefits of investing in ETFs compared to traditional stocks......