Welcome to Master Trader’s new trading advisory, ETF Investment Trader. Please enjoy this complimentary copy.
It is designed specifically for those wanting to profit from longer-term trades with a focused group of diverse products to take advantage of numerous trading opportunities.
Thank you for all of the positive comments received regarding our first issue.
Here is one, which we love receiving since it demonstrates the value of our education in helping investors and traders make money in the markets: “You guys are awesome! Keep up the great work! Learned discipline and how to make $$$ . God bless you! Eric”
Master Trader’s “techno-fundamental” approach to the markets will allow you to profit with our selection of the best ETFs to invest or trade now! Our two long bullish entries in S&P broad market index ETFs triggered last week with the overall bullish market environment.
Dow Jones Industrial Average
Above is the chart of the Dow Jones Industrial Average that we review each week.
It is now facing its first retest of Major Resistance (MR) just above 25,400. If DIA can get through that, and it looks like it should, the next reference point of MR is at 25,800.
I would be very surprised if it could do that without a retracement along the way.
ETF Market Overview Video
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ETF Trend Matrix
ETF New Trade Ideas
Below is a weekly chart of iShares Transportation Average ETF (IYT).
ETF Trade: Over $198.09, consider buying IYT.
Option Trade: Over $198.09, consider buying IYT and simultaneously selling Jul (7/20) $200 call options (40 DTE) at mid-point (the calls closed at $2.65/share which will be higher if triggers and will lower the cost of the long ETF).
Technical Setup: Breakout daily and weekly with price void above, with multiple bullish Bottoming Tails (BT) on the weekly chart.
Option Strategy: Covered Call (CC). For further discussion on the strategy, please see our video at https://mastertrader.com/option-strategies-series-definitions/
Stop: $192.97.
Below is a weekly chart of iShares US Home Construction ETF (ITB).
We will be watching for long entry on a daily pull back.
ETF Open Trade Updates
6/4: SPY – Bought SPY at $275.01. Setup: Bullish consolidation at the high end of a Bullish +WRB, follow by a Bullish Breakdown Failure (+BDF) reversal. Stop Loss: $267.68. Update: Acting well, no changes needed.
6/4: XLG – Bought XLG at $195.01. Setup: Bullish consolidation at the high end of a Bullish +WRB, follow by a Bullish Breakdown Failure (+BDF) reversal. Stop Loss: $189.98. Update: Acting well, no changes needed.
For product and subscription information to ETF Investment Trader, Click HERE.
Master Trader and You Building Your Financial Future Together
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
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Twitter: @GregCapra
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NOTE: Master Trader will show opening and closing prices of all stock and options trades. We recommend that all traders and investors use proper share sizing for positions and money management. However, we cannot recommend what that is for your particular trading style, risk tolerance, or account balance.
We urge you to calculate your own share/position size based on your individualized risk parameters, Trading Plan, and familiarity with the proposed trade strategy and risk. Advanced Management Strategies (AMS) covers in detail foundational and advanced position and money management.
NOTE: Master Trader and its representatives may have existing positions in actual or other trade recommendations before or after suggested herein. Additionally, we may manage them differently for internal purposes based on different risk parameters than noted herein.
All trade ideas and content are for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, option or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds. Investment or trading information provided may not be appropriate for all investors, and is provided without respect to individual financial sophistication, financial situation, investing time horizon or risk tolerance. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. Master Trader Consulting, Inc. is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardize Options and the Risk Disclosure for Futures and Options found here: CLICK HERE.
