We trust you have been enjoying these complimentary copies of Master Trader’s new trading advisory, ETF Investment Trader.
It is designed specifically for those wanting to profit from intermediate-term to 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 on our prior issues!
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!
Dow Jones Industrial Average
Above is the chart of the Dow Jones Industrial Average that we review each week.
The Major Support (MS) was the obvious next reference point where buyers were going to give it another try, and they did. So far, that attempt to hold this area is less than convincing.
The depth of the retracement from Major Resistance all the way back down to Major Support is bearish. But unless prices trade below the prior swing low, the trend in this time frame is still up, yet barely.
The fact that the 200-day moving average (red line) is directly below current prices (the price area at 24,200 to 24,400) is going to be a widely followed reference point this week.
ETF Market Overview Video
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NEW ETF TRADE IDEAS
Below is a weekly chart of SPDRÂ S&P Oil & Gas Exploration & Production ETF (XOP).
6/25: XOP – Over $43.10, consider buying the ETF.
Technical Setup: Bullish Gap Breakout from multi-week consolidation above 20/50-MA on the daily, bullish engulfing on the weekly, and price void above on the monthly.
Stop Loss: $40.30.
OPEN ETF POSITIONS WITH TRADE UPDATES (WITH VIDEO)
6/18: ITB – Trade: Bought a half-lot of ITB around closing price of $39.11 and sold for the other half lot the Jul (7/20) $39 put options for a credit of $.85/share, giving us an average cost basis of $38.63 if assigned on the short puts.
Original Technical Setup: Pull back to support on daily after +WRB Breakout from consolidation on the weekly chart at the r50-MA.
Trade Update: Stopped at $38.38 for a loss of $.25/share.
6/11: IYT – Trade: Bought IYT and sold Jul (7/20) $200 call options for a debit of $195.85/share.
Original 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). Used to reduce cost basis on IYT.
Trade Update: Retraced with broader markets deeper into support, no changes.
Stop Loss: $192.97 (which is under the weekly Bottoming Tail bar).
6/4: SPY – Trade: Bought SPY at $275.01.
Original Technical Setup: Bullish consolidation at the high end of a Bullish Wide Range Bar (+WRB), followed by a Bullish Breakdown Failure (+BDF) reversal.
Trade Update: Sold the Jul (7/20 expiration) $282 call options for $1.10/share, reducing cost basis to $273.91.
Stop Loss: Stopped and closed position at $274.77 for small gain of $.46/share because of the gain from the short call.
6/20: XBI – Trade: Bought the ETF at $99.09.
Original Technical Setup: Breakout to all-time highs from bullish consolidation, great relative strength to the market.
Trade Update: It had a bullish breakout and then retraced back to Minor Support which is okay. Nevertheless, because the broader markets are still questionable, if XBI trades under $98.44, recommending selling Jul (7/20 expiration) $102 call options (closed at $1.04/share) to reduce cost basis and give time decay cushion.
Stop Loss: $94.88.
6/4: XLG – Trade: Bought the ETF at $195.01.
Original Technical Setup: Bullish consolidation at the high end of a Bullish +WRB, follow by a Bullish Breakdown Failure (+BDF) reversal.
Trade Update: Last week XLG retraced to Minor Support with the market selloff. Weekly and monthly charts are still in bullish uptrends so looks fine.
Stop Loss: $189.98.
VIDEO ON OPEN AND CLOSED POSITIONS
Please click on this link or copy/paste in a blank URL:
For further discussion on the above option strategies, please see our video at https://mastertrader.com/option-strategies-series-definitions/
For product and subscription information to this incredible service, please see ETF Investment Trader, Click HERE.
ETF Trader only $197 a year as a new offering subscription.
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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
Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:
Twitter: @GregCapra
Stocktwits: Greg_Capra
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.
