Tomorrow is FOMC day! I can not imagine much will happen until the magical time of 2:15 EST. The dollar is still crucial going forward for my bearish thoughts on oil. Today was not a good day for the dollar. As measured by UUP, it was down 1.18%. I still believe the dollar has a little more on the upside, which would correspond to oil moving into oversold territory as measured by PPO, Stochastics, RSI, and CCI. The same statement can be made for the metals, gold and silver.
The following comments are updates on those ETFs and ETNs that I am currently following or have positions:
GLD ($90.92) -- Support is right at its 200-day EMA of $88. If dollar strengths, GLD will sell off towards support at $88.
GLL ($15.34) -- It is right at support. It's 50-day EMA is at $15.44, which has been resistance. In addition, it has moved into overbought territory as measured by PPO, Stochastics, RSI, and CCI. I have a small position in GLL, which I may decide to liquidate tomorrow morning.
SLV ($13.63) -- Silver has support at $13.50. PPO, Stochastics, RSI, and CCI are moving into oversold territory. If it can hold the $13.50, I may be tempted to purchase it with a price object near term of $17, which is a major overhead resistance zone.
ZSL ($9.11) -- Support is at $9. However, PPO, Stochastics, RSI, and CCI are all over bought at the current price. Near term, I am negative.
DTO ($76.69) -- This double-inverse oil ETF has been my favorite trading vehicle recently. I liquidated this position on Monday at an average price of $79.01 for a 10.8% profit. Depending on the dollar, I could see DTO trading at $90. It is still on my radar.
UNG ($14.48) -- I have small position in UNG, which was part of my paired trade with DTO. DTO leg was lifted at a profit. However, I decided to hold UNG. It has been trading right at its 50-day EMA for the past week. I still like UNG, because I believe it is cheap in relation to oil (USO:UNG). That is the price spread will work in the favor of UNG.
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