EOM Trading Tuesday: UWTI 11.8.16

Words can never adequately convey the incredible impact of our attitudes toward life. The longer I live, the more convinced I become that life is 10 percent what happens to us and 90 percent how we respond to it.                 Charles Swindoll

Since many will be focusing on election results tonight, I am sending my daily post early.

Within 24 hours, we will should know the results from national, state and local elections.

It is up to us how we allocate our resources, time and energy. No matter who is in office, it has minimal effect on the time and energy I dedicate to build financial wealth for my family and quality education for EOM Members.

Tonight, I focus on UWTIVelocity Shares 3X Long Crude Oil ETN

Key Points…

1.    Trades (3X) on the front month WTI Futures Contracts for that day
2.     Is an ETN
3.     Has a high 1.35% Expense Ratio
4.     No dividend risk if shorting
5.     No options
6.     After previous pullbacks, UWTI rallied 152%, 89% and 59%
7.     Previous rally indicators are highlighted-blue boxes

How do I play UWTI? I do not plan to short but am looking to play a bounce after a healthy pullback.

I plan to set an alert if the following happens;

1.   Price trades above the 5-10-15 SMA
2.   CMF (20)/MACD Histogram turns from negative to positive
3.   Volume increases 25%+
4.   Slow Stochastics crosses over 20
5.   RSI crosses over 30

If you don’t set alerts you will have a lower probability of catching breakouts. I prefer to set alerts with the broker I am trading with instead of my charting service.

Enjoy your evening,

David O. England

Plan your work, work your plan, and share your harvest! Philippians 2:3-4

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

If you have a question or comment, contact David England at eyeonthemarket@outlook.com.

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