1-30-15 – Trading Strategy
1/21/15 – EWJ (Non Leveraged Japan) @ $11.35
YINN (China) Stopped @ $37.90 for a 3.96% loss
– Big dip during the day with a strong recovery afterwards. This is a typical shake-out to take out the stops and I was one of them. Going to try and reestablish a position.
EDC (Emerging Growth Markets) Stopped @ $23.60 for a 3.91% loss
– Same situation here, the dip buyers came in to support, but at a much lower point than my stop.
Gold is moving into the corrective territory I want, but before I try to pick a bottom, I want to see it move back in the direction of it’s short term trend. The same goes with JNUG.
UGAZ broke it’s level of support today, going to put in a safe bet to try and catch a rebound and play it to the downside in DGAZ.
Current Holdings with Open Orders for 1/30/15
Sell EWJ (Non Leveraged Japan) Limit @ $11.85
Sell EWJ (Non Leveraged Japan) Stop @ $11.50
– Japan continues to move against the global markets in an upward direction. This is a non-leveraged ETF, so the upside/downside potential is minimized and we can stand to hang in through some small corrections for the larger possible move.
Open Orders for 1/30/15
Buy DGAZ (Inverse Natural Gas) Limit @ $7.10
Sell DGAZ (Inverse Natural Gas) Limit @ $8.20
– Despite volatility in the other markets, UGAZ (Natural Gas) is entering new low territory. When a stock can show conviction that it can enter new territory that’s when the real movements occur.
Chart of UGAZ (Natural Gas) breaking below it’s area of support
Chart of where I want to be in DGAZ (Inverse Natural Gas)
Order Cancels Order
Buy EDC (Emerging Growth Markets) Limit @ $23.75
Buy YINN (China) Limit @ $36.30
– Because China is a big part of the EDC ETF, I only want in on one of these. After today’s huge recovery, this could be the dip buying opportunity I was hoping to get in on. I’ve also been able to redraw a channel in EDC instead of a triangle. Today’s bounce works perfectly with a bounce off the bottom upward trendline.
Chart of EDC (Emerging Growth Markets) with updated trendlines
Chart of YINN (China)
Buy EURL (Europe) @ $30.30
– Yesterday was another shakeout with a huge intraday drop. With today’s gap up, this may be the continued trend I was trying to get into originally.
Buy JNUG (Junior Gold Miners) @ $24.15
Sell JNUG (Junior Gold Miners) @ $26.70
– Buying on a possible 3rd day dip in JNUG and selling for a 10% intraday profit if it hits. The strategy would have worked today, but I was more bullish on gold and was looking for the drop in JDST (Inverse Junior Gold Miners).