ETF Trading – USO, SCO, DIA, QQQQ

Oil continued to move higher yesterday and so did USO . Perhaps you took an initial short position. Short a second position at the end of the day should it close higher again. Otherwise, take your gains should the closing price move below it’s 5 day moving average.

As I mentioned yesterday, you can also short USO by taking a long position in SCO. SCO seeks to replicate, net of expenses, twice the inverse daily performance of the Dow Jones AIG Crude Oil Sub-Index.

I’ve posted the charts for DIA and QQQQ. Boy, this market sure looks overbought! Notice the high RSI(2) readings.

These trades are based on the strategies found in the book by Larry Connors: High Probability ETF Trading.

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