ERX (Direxion Dialy Enegry Bull 3 x Shares) head & shoulder ERX (Direxion Dialy Enegry Bull 3 x Shares) head & shoulder.
Erx
US Dollar DXY TradeSince Donald Trump entered office and said that the USD was too strong, the DXY continues lower. It is a good time to be in commodities. I added to my PM miners today NAK and JNUG. I hold WTIC with ERX, Go Long commodity, pick anyone you want. I see US Dollar at least to 92.22 before any bounce.
ERX Long IdeaWith WTIC moving higher the OIL sector stocks are finally starting to react. GUSH and ERX both looks promising here. GUSH had a big day up over 10%. ERX I am looking to go long with a move over the 50sma. Tomorrow may be a buy.
Energy (D): GasolineThere are three if/else statements with this trade.
If price fills the gap set on December 2nd and shows signs of buying, go long.
Else, stay flat and wait.
If price reaches purple region as indicated in chart, go short.
Else, stay flat.
If price reaches "Buy Here" level, buy there.
- Odds are we will see some action in this trade as long as price does not gap beyond forecasted prices. Gas and oil essentially have a 1-1 positive correlation, so follow this asset for some clues/ indication on energy trajectory.
USOIL trade idea.....Going long on USOIL by using GUSH. USOIL just completed a 3 drive to a bottom pattern. We can expect a turn here. Panic selling this morning is tough to go long into but the rewards should be there. Set a stop just below $43.
USOIL ready to reverse upI went long on 2 light sweet crude oil futures last night at $44.30. Now $44.81. Good support in the low $44 area. This morning I will enter a position in ERX and a smaller position in GUSH in my 401k. See also chartwatchers idea on this.
XLE/ERX - Trend line attackI'm not satisfied with the performance of our XLE and ERX position. Sooner or later the rally will start here also... The more time we spend below the purple trend line the bigger breakout will come. On the 4th of April we broke above the trend line but lost it in a week. On the 4th of May we printed a new low in this decline on very high volume. Most probably that day was the bottom. If stocks are printing a correction during the next 2 weeks - unlikely - we might test back 65.82$...
I think when we break above the purple trendline again that will be a valid breakout and the great rally in oil stocks will start finally.
I will try to trade some individual stocks also. There will be stocks which will print 4-500% rally in the next 3-4 months.
I think ERX also has a good chance of printing a 200-300% rally.
All the indicators (MACD, TSI, SlowStoch) are showing a divergence. I'M preparing for 2 scenarios:
1. We are churning around the trendline for a few more days and breaking out
2. we test back the lows at 65.82$ and a monster rally is coming out of the double bottom.
Nasdaq, S&P, Dow Jones at all time highs. I see zero chance that oil stocks will miss this rally.
GUSHBuying the oil services 3x ETF here GUSH. Looks to be coming off a double bottom (purple arrows) and has a bullish TSI crossover. Wish I spotted this earlier.
TWD as energy emerges from the depthsTidewater stock price has been crushed over the years, down some 95%. As oil prices stabilize in the expected$50-60 range in 2017, TDW may be a multi bagger winner in 2017.
ERX for bullish 2017ERX breakout is promising a move to 68-70 if the promise of measure move is fulfilled.
USOILTrying to target USOIL. Sooner or later the trade must end, trying to determine a top is tough. I see 2 scenarios. On the attached chart. EW 1-5 is clear with a target of $53.43. Also, I can see a smaller 12345 within current wave 3 (green dotted lines) which would have a top at $49.11. I'm leaning for both to be correct. a pullback shortly wiithin the red resistance zone, then a push higher to (5). That would also make a completion for the current move and AB=CD continuation to (5). Either way, OIL goes higher.
GUSHLooks like the energy sector is starting its next cycle move higher. The gold candles represent the last move starting around January. Energy sector runs in 30-50 day cycles. This could be a good move higher for a while.
USOILLooking at the charts for USOIL, all I can see is a Harmonic patter forming. The Bullish, Bat pattern will typically retrace to 88.6% of the previous XA run up. This would put USOIL at $37 a barrel. I won't short this, but if it gets to $37 I will go long in energy.
UPDATE ON ENERGY FUNDS/XLE - HUGE OPPORTUNITY COMINGUPDATE ON LAST RELATED IDEA; XLE/ENERGY STOCKS/OIL/CANADIAN DOLLAR
PLEASE NOTE TIMING FOR OIL'S POTENTIAL BOTTOM/TRAJECTORY
USOILUSOIL is suffering a severe pullback. Dropping form a high at $51.43 its now at $46.43. I had originally had the 12345 going up to $60. I am now thinking we had the 12345 complete at $51.43 and are now going through a ABC correction. If A and C are equal we could go as low as $44.57. If we get a double bottom here it could be over.
LGCYLGCY looks to be completing an AB=CD pattern. Already past the 61.8% Fibo retracement. RSI is oversold and moving higher. IF CD=AB we could get to $4.50 from here which is greater than 100% return. With OIL moving higher this stocks downside looks minimal barring some FA issue.
USOILUSOIL, new outlook. OIL goes to $45.27 which is the 38.2% retrace. Curerntly playing this short with DWTI and ERY. Once we reach $45.27 I'll flip to ERX and UWTI.
USOILUSOIL hit my $50 target last week and appears to be rolling over after hitting the resistance area in the blue box. The EW pattern is complete at $50 so an ABC correction is expected. RSI and %R are both overbought. volume dropping off.
I'm taking a small trade in ERY here near a double bottom.
