I was not planning on doing much this week because of the low volume but after reviewing some charts and risk levels on my top 5 trading vehicles I could not help but share my findings with everyone last Friday.
You can see what I talked about on Friday here: http://www.thegoldandoilguy.com/articles/holiday-short-squeeze-oil-trade-idea/
This Wednesday turned out to be an exciting session with all 5 of my trade ideas moving in our favour right on queue.
Charts of the 5 investments moving in the directions we anticipated …
– U.S. Dollar (NYSEARCA:UUP) bounced off support
– Stocks (NYSEARCA:SPY) are topping and selling off today
– Oil (NYSEARCA:USO) looks to have topped and is selling off
– VIX (NYSEARCA:VXX) Volatility Index just bounced
Many of my readers took full advantage of my recent analysis and trade ideas which is great to hear. All the different ways individuals used to make money from Friday’s analysis is mind blowing…
The most common trade is the oil one with most traders adding more to Tuesday when the price reached its key resistance level on the chart. Also many traders took partial profits Wednesday locking in 3% or more in two days using the (NYSEARCA:SCO) ETF.
It’s amazing how many people like to trade the vix using ETFs. The best trade from followers thus far was an 8% gain in (NYSEARCA:TVIX) which was bought 4 days ago anticipating the pop in volatility which I had been talking about last week. Keep in mind ETFs for trading the vix are not very good in general. I stay away from them, but TVIX is the best I found so far.
Currently stocks are oversold falling sharply from the pre-market highs. Meaning stocks have fallen too far too fast and a bounce is likely to take place Thursday.
Also we saw some panic selling hit the market today with 14 sellers to 1 buyer. That level tells me that the market needs some time to recover and build up strength for another selloff later this week or next. We will see this pause unfold when the SP500 drifts higher for a session or two with light buying volume. This will confirm sellers are in control and give us another short setup.
In my Wednesday morning video I explained how/where to set stops when using leveraged ETFs because I know 90% of traders using them do not have a clue as to how to do this and they get shaken out of their trades just before a top or bottom. So if you want to learn more about it watch this morning’s video please: http://www.youtube.com/watch?v=lDagN5Vpvys
I hope this helps you understand things more… Over time you will pickup on a lot of new trading tips, tools and techniques with this free newsletter so just give it time and keep trades small until you are comfortable with my analysis.
My name is Chris Vermeulen the Founder of TheGoldAndOilGuy. I have more than a decade of extensive experience trading stocks, indices, ETFs, CFDs and Futures. My trading style has been thoroughly refined over the years, blending the best cutting-edge approaches that have only been possible with modern systems and diverse technologies. I believe I represent the ideal combination of trading styles and trade setups including a number of trading breakthroughs entirely on my own. It is this blend of the time-tested and innovatively new that allows me to take advantage of bull, bear and flat markets regardless of how each week plays out. I’ve repeatedly observed that one of the biggest keys to making a lot of money in challenging markets involves aiming for big, quick returns, while maintaining an extraordinary focus on minimizing risk. This may be what most distinguishes what I provide vs. the experiences delivered by the vast majority of other newsletters.