10/11 – ETF Trading – USO, SCO

USO closed higher yesterday and you took your first short position in the etf trade. For the leveraged etf trade, you took your first long position in SCO. Updated charts are posted below.

As mentioned yesterday, we’ll scale in with up to 3 positions. So, take a second short position should USO close higher today. For the inverse trade, take a second long position should SCO close lower.

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. Exit the long trade in SCO when the signals for USO trigger.

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.

2:30 pm edt update: My apologies; I had previously posted a chart of UCO instead of USO. Corrected chart is shown below.

Updated charts:

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