10/04 – ETF Trading – USO, SCO

USO closed higher Friday, enough to trigger taking a second short position. Take a third and final short trading position only if the closing price of USO moves higher from here.

Follow the signals for USO to make the third long and final leveraged trade for SCO.

Otherwise, we’ll just wait for our etf exit signals to trigger. Our 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. You’ll exit the leveraged trade in SCO following the signals for USO.

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

Learn more about etf trading strategies 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 and be ready for the next trading session.

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