Scalper1 News
Summary We took profit from both JNUG and JDST on Tuesday. DWTI doing well for us along with DGAZ. Reminder it is Fed week and expect some volatility – which we don’t mind. (Subscribers received early access to this article here .) INDEXES The markets opened down a bit on Monday as housing starts fell more than expected. It tried a couple of times to get going but it just couldn’t get over the hump. The ProShares UltraPro QQQ ETF (NASDAQ: TQQQ ) was the only one that could move higher ending positive for the day. If the market opens higher tomorrow I would look to trade the ProShares Short VIX Short-Term Futures ETF (NYSEARCA: SVXY ) and the Direxion Daily Financial Bull 3x Shares ETF (NYSEARCA: FAS ). It’s Fed week and I said in Sunday’s article to subscribers I like the ProShares Ultra VIX Short-Term Futures ETF (NYSEARCA: UVXY ) during Fed week as we usually get a lot of volatility, opened at 28.50 Monday and went as high as 29.65, closing near the high of the day at 29.51. I would be a buyer over 29.65 Tuesday. If it gaps up buy the higher high. CHINA/RUSSIA/EMERGING As I wrote in my Current Thoughts on Monday referencing China, the country has some big issues ahead of it with its shadow banking that we here in the U.S. have already experienced. I have said for the longest time I like the Direxion Daily FTSE China Bear 3x Shares ETF (NYSEARCA: YANG ) on dips but thought we would get a reversal to play with a potential U.S. market move higher. Two days in a row of weakness and we may be done with the Direxion Daily FTSE China Bull 3x Shares ETF (NYSEARCA: YINN ). I am still holding out hope but the truth about China is going mainstream now. I even said that would be back over 100 again and I think it will at some point. The Direxion Daily Russia Bear 3x Shares ETF (NYSEARCA: RUSS ) has really lagged the last run up and I would be a buyer over 31 Tuesday. The Direxion Daily Russia Bull 3x Shares ETF (NYSEARCA: RUSL ) is still a buy over 17.24 but these two have not triggered green on the weekly yet. The Direxion Daily Emerging Markets Bull 3x Shares ETF (NYSEARCA: EDC ) opened lower and this uncertainty is causing me a little concern in that the Direxion Daily Emerging Markets Bear 3x Shares ETF (NYSEARCA: EDZ ) may now become the play. We’re only 3 points away from a run in but first need to take out 39.20. Being that it is Fed week, either one of these can offer some trades on a higher high. With the Direxion Daily Brazil Bull 3x Shares ETF (NYSEARCA: BRZU ), we stopped out with some profit Friday and it did open higher at 18.69 Monday and went as high as 17.28 but then fell with the overall market. If you did get in again, it may have got you a little profit but I can’t say I like it now. Volume was pathetic Monday. INTEREST RATES As you know, I have been saying for 6 months now I like the iShares 20+ Year Treasury Bond ETF (NYSEARCA: TLT ) on the dips but thought the ProShares UltraShort 20+ Year Treasury ETF (NYSEARCA: TBT ) would move higher with a turn in the market. With it gapping down at the open Monday was obviously taken off the table. Interest rates on the 10-year were down 1.4% Monday and TLT is looking closer to a run once it gets over 126.61. First up, the 124.55 resistance. PLEASE NOTE: I have to keep reminding everyone that during Fed week, we get more volatility than normal. Monday was the first example with a reversal of Friday’s run up. Tuesday, we could very well get a reversal higher and it’s easy to switch sides after recognizing it. But today’s report is written mostly with the assumption that Tuesday’s micro trend is continued. In the Trading room, I call it like I see it during market hours and it was a good day for us Monday. ENERGY I said at the close on Friday I like the VelocityShares 3x Inverse Crude Oil ETN (NYSEARCA: DWTI ) at 109.80 where it ended the day. It gapped up Monday and I emphasized in the room that I still like it and gave again my target at some point of 200 again, which we played the last run up to over 200. It closed at the high and is up to 116.81 after hours. Stay long and strong now. Dips will come to try and shake you out and if you want to take profit then do so as you can always get back in. Past 124.25, which may act as resistance, I would stay in for a nice ride. For the VelocityShares 3x Inverse Natural Gas ETN (NYSEARCA: DGAZ ) I said to stay long and strong in Sunday’s report and move stops up to where you lock in profit now or 9.74 if conservative. Monday, we got the gift of a gap up to 11.05 and it never looked back. I said in the room Monday a couple of times to lock in some profit as it got to the upper $11s and again just over $12. We have had a 30% run in this and nothing goes straight up. As such, I have put the VelocityShares 3x Long Natural Gas ETN (NYSEARCA: UGAZ ) on the one to watch list. The Direxion Daily Natural Gas Related Bull 3x Shares ETF (NYSEARCA: GASL ) I keep saying another day another 4% lower and Sunday I wrote, “I would only run from it.” Monday for the first time in a while, I don’t have to say it lost 4%, as it lost much more down 17.84% for the day. I am now putting it on the watch list as the volume increased which is either sellers or some buyers coming in. We can get a 10% to 20% bounce in this quickly but again, keep in mind it is a lower volume play. I only want to buy it on an up day, not chase it down. The Direxion Daily Energy Bear 3x Shares ETF (NYSEARCA: ERY ) is the one making higher highs for us. Be a buyer over 24.55 Tuesday. It is 24.43 after hours. Energy not behaving very bullish and looks like it wants to run. Some resistance around 28 and then 30. GOLD MINING RELATED ANALYSIS The Direxion Daily Junior Gold Miners Index Bear 3x Shares ETF (NYSEARCA: JDST ) gave way to the Direxion Daily Junior Gold Miners Index Bull 3x Shares ETF (NYSEARCA: JNUG ) in the trading room Monday and we scalped a little off on an intraday reversal. Then we got full on long again and I recommended holding. We have to get through 24.50 now and then 25.35 and 26.74. Past 30.58 we are off to the races. I have been waiting for a while now to get long and stay long and even though reversals come, the dollar is poised to move higher and we just need gold and silver to move lower. As you can see from the first sentence though, even though I have been waiting for a great trade in, I can still trade the other side for profit if it comes. (click to enlarge) (click to enlarge) Scalper1 News
Scalper1 News