Current Positions and Today’s Trades
Today we had a good morning trading DWT again, getting 6.61% and 10% on our two half share trades. DGAZ we did well and decided to lock in the profit on it as I have a good memory of last time it turned green and reversed the next day on us. JDST we held overnight and got stopped out with a tight stop but got back in again and got the loss back and more. We tried NUGT but didn’t feel good about it and we got out flat. LABD also treated us well. We decided to hold onto our green weekly longs and added a new one with RUSS. After the data came out I thought for sure we would head lower today but later in the day they revised upward the PMI data. Not happy with seeing something like that occur in markets this day and age.
Lots of data tomorrow, headlined by the ADP nonfarm Employment Change and Initial Jobless Claims, then Manufacturing and ISM Manufacturing PMI and later Crude Oil Inventories and Nat Gas Storage. Be careful being long or short oil and nat gas before that data comes out at 10:30 and 11:00.
Interest Rates
TMF moved up a hair today which is good.
Energy
We ended up taking the trade long DGAZ and got rewarded. Watch for the storage report now.
Glad we took DWT home. It owes us from months ago (good memory, lol). Nice to see us get some of that back today and then some. We did lock in the profit and are in wait and see mode now for the data to come in. We might want to keep an eye on DRIP too.
Precious Metals and Mining Stocks
Today might have confused many of you but I stuck with JDST instead of going with JNUG or NUGT and we came out ahead. I still think we will actually, even though the dollar was down big and gold up nicely today. Gold closed a little weak and I could have got one more trade in JDST over 80 but chickened out. I wanted to protect a good day of trading and it was late in the day and I didn’t want to be tempted to hold overnight.
Hot Corner (the biggest movers – 3% or more – or new ETFs that are green on the weekly – those in bold are consecutive days in the Hot Corner):
DWT, RUSS, DGAZ, DRIP (RUSS new green weekly)
Cold Corner (the biggest moved lower 3% or more that are green on the weekly and or weekly/monthly or turned red on the weekly – those in bold are consecutive days in the Cold Corner):
RUSL, UWT, GUSH, BRZU (YINN new red weekly)
Green Weekly’s
These are the ETFs that have turned green on the weekly and the dates they turned green. This is used for tracking your percentage gains so you know when to take profit for each ETF per the Trading Rules profit taking guidelines. It is also used for tracking the percentage from high to keep a stop on remaining shares. These green weekly’s work as you can see from the %Gain/Loss tables. You won’t get the exact high with your trade but you will also be out before typically well before they start to fall again. Your best way to profit with the service is stick with the green weekly trend and take profit while using a trailing stop on remaining shares. Also, if these green ETFs are up for the day at the open, they offer the best scalping opportunities. I am always fine tuning this section so if there is confusion at all, email me and be specific and I’ll be happy address.
I know I have said this many times but it is worth repeating; If you stick with the green weekly trades your odds of profit increase as there is more risk with the day trades. I call the day trades with the intent of catching some runners, so will get a few 1% stop outs but eventually catch the 5% to 10% or more runners. The important part of the list below is that the longer the ETF stays on the list (the one’s at the top of the list by Entry Date) the more likely it is to turn red on the weekly and the opposite ETF comes into play as a long. You’ll notice in the last column on the right it says “Current percentage from high.” This is your normal stop out for any ETF where I don’t specifically call it per the Trading Rules which lists the trailing stops for each ETF. It is a Trailing Stop percentage from the high and I have noticed the pattern that the closer it gets to 5% the sooner the ETF turns red on the weekly.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.