Leveraged ETNs MORL 5.4.17

In this series, we identify quality trading candidates and fine-tune strategies in the Leveraged ETN file C C1. 

The goal for EOM members; see how quick trading profits cover EOM education costs.  Then focus on how many dollars we can generate in profits, each and every month.  Yes, we look at trading as a business around here.

Per the performance chart (5.4.17), MORL has overtaken SMHD as the group leader and outperformed the SPX by four times.  

An interesting story from Investopedia.com on their 20% plus dividend.

Key Points on MORL

1.    Trading in correlation to the SPX

2.    Has a sporadic dividend due to the quarterly dividends paid by their holdings

3.    Previous pullback was only 13%

4.    Previous rally was 127% and current rally is/was 56%

5.    Looks like some profit taking is going on now

Action Points for Setting Alerts

1.  Price closes under the 6 SMA-there now
2.  CMF crosses under zero
3.  MACD Histogram crosses back under zero-it is there now
4.  RSI closes under 30
5.  Slow Stochastics crosses under 20
6.   Previous pullbacks were signaled with red Elder Impulse bars

The new money flow indicator MFI has been added.  Compare it to the CMF to see which one the Institutions are using.

I highlighted (red areas) the indicator levels when MORL made previous runs. The institutions will have their alerts set for a duplicate scenario.  I plan to do the same.

When we receive a Simple Simon Buy Signal, go to the daily chart and confirm another SS Buy Signal before trading.

Tomorrow we study BDCL for trading ideas to build additional profits for our portfolios. 

Enjoy your day,

David O. England 

Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

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

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