Here's the most recent ETF Junkie letter giving you an idea of what to expect when you subscribe to the ETF Junkie Letter, besides profits of course:
ETF Junkie January 31st, 2016 Current Action: Buy 5% LABU @ 7.01 Raised stops on ERX to 16.69 and SPXL to 65.49 The first month of 2016 is in the books and the Junkies are rolling in it. If you followed the simple nightly instructions, you are up 8.56% for the month, with three current open positions up double digits. It doesn’t matter what the economy is doing if you just follow the price action. We are going to add a small position in the LABU on Monday morning. XBI has been a laggard in this recent up move and is still oversold. This is a dangerous sign long term, but with the expectation of the broad market rally to continue of a week or two, we are going to attempt to capture a short term move only to the most recent resistance.
Because of the volatility in XBI, that resistance area is almost 10% away, which means LABU should bring us a gain of close to 30% if we aren’t stopped out. Because of this volatility, we are only taking the small 5% position. And if filled @ 7.01 we’ll put in a sell stop at 6.49.
That was a huge rally on Friday, and there may be a slight pull back before it resumes over the next week or two into our target area. We are staying long SPXL and may look to take half off when it gets into the low end of our target area around 1967.
Energy also had a huge day on Friday arriving at some resistance. Even though Energy is getting into overbought territory, we are going to continue to hold expecting XLE to reach a major area where the 50d moving average, 50% retracement, and volatility stop come into play.
Finally, we’re taking a look at our UGAZ (UNG) position which we failed to add to on Friday. We’ll raise the limit order on another 5% to 2.02, but I'm not tremendously optimistic that we’ll get filled there before it rallies some more and our target is reached. UNG has a ways to go before it reaches overbought levels and good resistance at the top of the upward channel. If you haven’t gotten in yet, and want to be a rebel, you could do half in on the open Monday, and the other half at 2.02.
Current Positions:
Working Orders:
I hope all the Junkies out there had a great first month of the year. This is one of the few times of the year when I watch golf on TV. Torrey Pines is great course, and I always enjoy the close ups of Paulina Gretzky.
Brad Price ETF Junkie
1 Comment
|
AuthorBrad Price, the founder of ETF Junkie, has more than 15 years experience trading the markets. Archives
May 2017
Categories |