10/07 – ETF Trading – USO, SCO

USO closed modestly higher yesterday. We have a full, short trading position and we’re patiently waiting for sell-off to trigger our exit signals.

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.

For the inverse leveraged trade in SCO, exit the trade following the signals for USO.

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

Learn more about short 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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