DBO is a leveraged ETF for oil, even though it seems to be down in Asian trade, there seems to be strong accumulation in that ETF with distribution in the short ETF SCO.
So long DBO, I think it's a trade that's worth seriously considering. I doubt it lasts too long, but DBO can really move.
Sunday, August 15, 2010
Few Trades Are Up
These are speculative trades, they're all at market open, but read the notes. these are the tyoe of trades that can return double digits in a day, but are also volatile and speculative. You have to always keep risk management first and foremost in your mind. If the market bounces, these are likely to pop. Don't get greedy, don't expect them to run forever, it may only be a day. I always say, if the market gives you a gift, take it and double digit returns in a day is a gift to be sure.
When the market/if the market bounces, which I think we'll see early this week if not tomorrow, then we will start looking for stocks rallying into resistance. Don't forget to set your alerts, the free stock charting program I listed earlier has that capability.
When the market/if the market bounces, which I think we'll see early this week if not tomorrow, then we will start looking for stocks rallying into resistance. Don't forget to set your alerts, the free stock charting program I listed earlier has that capability.
Junk Bonds
I just did a follow up story on Junk Bonds at Trade-Guild, you might want to check it out. This is what I call a piece of the puzzle-it' not a light bulb that just lit up, but it fits in there.
COT is in this junk bond class and the trade did trigger, just keep that stop in place and moving up to lock in any potential gains. the good thing COT did that others did not was to buy out it's competition where others used the proceeds to refinance debt or to pay special dividends, COT actually used it to get a leg up so the trade might not be all that bad.
In any case,
You know the oil long I'd take a shot at. If we get the bounce, I'll be throwing a lot of trades your way, fir the bounce, I still really like the leveraged oil trade (see posts below).
ETFs that you might want to consider, especially at higher prices that are inverse, which means you buy them, but they give you short exposure, include the following...
FAZ, TWM, EDZ, SRS, EEV, FXP, ERY, SSG, SPXU, SRTY, SQQQ, SDOW, and SMN
LOOKING AT 3C, MY MOUTH WATERS. These are leveraged and set to fly. I would not use ETFs exclusively for short exposure to the market, you need stocks too, but the leverage of these makes them very attractive. If you look at a 5-day chart, each one is a buy right now. We do have this possibility of a pullback, but what if we don't get it? You may want to put together a plan of which of these you like, be sure not to over-correlate. I don't think you need shorts on the S&P, DOW and the Q's as they are likely to move together, but you may want one of those, China , Financials , Real Estate, etc. So figure which you like, what your allocation will be and consider phasing into them. Maybe you pick up 25% of your intended position now so you have some exposure in case the market just drops like a rock, then you add some in a market pullback/bounce, then you add a little more as we break key support levels and by the time the SPY is under $101 you'll want the position filled out. You'll be playing it like the big boys, you'll be accumulating. You can use a VWAP and buy under the VWAP-Stockfinder has this built in, I have the code for TeleChart-the tabs for both are at the top. I don't think these ETFs will pullback to their 10-day moving averages, there doesn't seem to be enough accumulation in the market for a bounce that big, but maybe they do, that would be an ideal spot to add a nice chunk.
If you have questions about these and how they may work with what's in your portfolio now, email me and I'll gladly give you an opinion if I feel like I can be of some help.
So... Junk bonds, the ETF isn't looking good. I smell default. With banks not lending, if junk bonds implode, where in the world will the money come from to keep these troubled companies afloat?
Have a great week everyone. If I see anything exciting, you'll find it here or on the list later as I'm off to go through some new scans I've set up.
COT is in this junk bond class and the trade did trigger, just keep that stop in place and moving up to lock in any potential gains. the good thing COT did that others did not was to buy out it's competition where others used the proceeds to refinance debt or to pay special dividends, COT actually used it to get a leg up so the trade might not be all that bad.
In any case,
You know the oil long I'd take a shot at. If we get the bounce, I'll be throwing a lot of trades your way, fir the bounce, I still really like the leveraged oil trade (see posts below).
ETFs that you might want to consider, especially at higher prices that are inverse, which means you buy them, but they give you short exposure, include the following...
FAZ, TWM, EDZ, SRS, EEV, FXP, ERY, SSG, SPXU, SRTY, SQQQ, SDOW, and SMN
LOOKING AT 3C, MY MOUTH WATERS. These are leveraged and set to fly. I would not use ETFs exclusively for short exposure to the market, you need stocks too, but the leverage of these makes them very attractive. If you look at a 5-day chart, each one is a buy right now. We do have this possibility of a pullback, but what if we don't get it? You may want to put together a plan of which of these you like, be sure not to over-correlate. I don't think you need shorts on the S&P, DOW and the Q's as they are likely to move together, but you may want one of those, China , Financials , Real Estate, etc. So figure which you like, what your allocation will be and consider phasing into them. Maybe you pick up 25% of your intended position now so you have some exposure in case the market just drops like a rock, then you add some in a market pullback/bounce, then you add a little more as we break key support levels and by the time the SPY is under $101 you'll want the position filled out. You'll be playing it like the big boys, you'll be accumulating. You can use a VWAP and buy under the VWAP-Stockfinder has this built in, I have the code for TeleChart-the tabs for both are at the top. I don't think these ETFs will pullback to their 10-day moving averages, there doesn't seem to be enough accumulation in the market for a bounce that big, but maybe they do, that would be an ideal spot to add a nice chunk.
If you have questions about these and how they may work with what's in your portfolio now, email me and I'll gladly give you an opinion if I feel like I can be of some help.
So... Junk bonds, the ETF isn't looking good. I smell default. With banks not lending, if junk bonds implode, where in the world will the money come from to keep these troubled companies afloat?
Have a great week everyone. If I see anything exciting, you'll find it here or on the list later as I'm off to go through some new scans I've set up.
WOWS Members Only Video
In this video I'm going to introduce you to an entry system that will serve you well in a market that is trending, but is in a counter trend move. Right now we consider the market to be trending down, but as you know, I'm expecting a bounce which will set up some great shorts. The problem is, although we have a good idea of when the market will turn, we can't say the exact day with 100% certainty. So I may list a limit order trade based on my belief that the market will turn in the next day or so, but in reality, perhaps the trade continues higher before it turns and becomes a great short entry-the higher you can enter the short, the more money you can make. So we will call this system of entering a trade "Swing 1" and typically I will tell you to use a 2,3 or 5 day chart, which reduces the noise and gives us a clear picture of the trend (counter trend) up and where and when that trend reverses at which point we want to be short.
The entry can be made on an intraday basis as the trade triggers during the trading day, however, the stop should always be made as close to the closing of the market as possible, not intraday. If you have questions about the video, please email me, I know it's a new concept, but it is designed to get you the most profit in a trade with the least amount of risk.
Remember this is a member's only video so you'll need access to it, use this link as it is an unlisted video and will not appear in any public places, you will only be able to access it with this link.
http://www.youtube.com/watch?v=P7md3_bXkao
So remember, if it is a limit order trade, watch in the notes for "Swing 1 Entry" and the type of chart-"2-day chart" or "5-day chart". If you need access to free charts in real time, this is the only place I know of that does not have the 20 minute exchange implemented delay (the exchanges charge for real time data).
FREE Stock Charts from Worden! The Web’s Only FREE, Streaming Real-Time, Web-Based Charting Service!
Here's the link to the junk bond story
http://online.wsj.com/article/SB10001424052748703960004575427690901781072.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
This means investors see the market as no longer affording them returns, they understand the rally is done. The treasuries yield is too low, so they are creating a new bubble in junk bonds which will probably become another problem down the line, but for now, it's good for us and our long term wealth accumulation strategy. Note COTT Corp mentioned. Isn't it interesting that I saw accumulation there and then they issue junk bonds and buy out a competitor. the trade triggered late last week as a long. This is what I mean about market manipulation, it is everywhere.
The entry can be made on an intraday basis as the trade triggers during the trading day, however, the stop should always be made as close to the closing of the market as possible, not intraday. If you have questions about the video, please email me, I know it's a new concept, but it is designed to get you the most profit in a trade with the least amount of risk.
Remember this is a member's only video so you'll need access to it, use this link as it is an unlisted video and will not appear in any public places, you will only be able to access it with this link.
http://www.youtube.com/watch?v=P7md3_bXkao
So remember, if it is a limit order trade, watch in the notes for "Swing 1 Entry" and the type of chart-"2-day chart" or "5-day chart". If you need access to free charts in real time, this is the only place I know of that does not have the 20 minute exchange implemented delay (the exchanges charge for real time data).
FREE Stock Charts from Worden! The Web’s Only FREE, Streaming Real-Time, Web-Based Charting Service!
Here's the link to the junk bond story
http://online.wsj.com/article/SB10001424052748703960004575427690901781072.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
This means investors see the market as no longer affording them returns, they understand the rally is done. The treasuries yield is too low, so they are creating a new bubble in junk bonds which will probably become another problem down the line, but for now, it's good for us and our long term wealth accumulation strategy. Note COTT Corp mentioned. Isn't it interesting that I saw accumulation there and then they issue junk bonds and buy out a competitor. the trade triggered late last week as a long. This is what I mean about market manipulation, it is everywhere.
