SIJ ProShares Ultra Short Industrials Trading Setup

By: Patrice_V_Johnson

LONG-TERM TREND (> 1YR) OF THE MARKETS: UP

SHORTS LONGS _____________________
None ProShares Ultra Short Industrials (Ticker Symbol: SIJ)

This e-mail is to alert you that The J.E.D.I. Way believes that there will be a trade in the making in SIJ provided that one of the following

SETUP(s) below have been satisfied:

SETUP 1: Prices on SIJ "close" at or above $30.51.

or

SETUP 2: Prices on SIJ "close" at or below $28.77.

If SETUP 1 is satisfied, The J.E.D.I. Way will go long 100 shares of SIJ at the market, if and only if prices close at or above $30.51 on higher volume than the previous day and the Slow Stochastic has turned up from oversold levels (between 0 to 20) and the RSI is above 50.

NOTE: If filled, we will place a protective sell stop behind our long position at $29.84. This should limit our loss on this trade to $67.00 before commissions (assuming we receive a fill at $30.51).

If SETUP 2 is satisfied, instead, The J.E.D.I. Way will short 100 shares of SIJ at the market, if and only if prices close at or below $28.77 on higher volume than the previous day and the Slow Stochastic has turned down from over bought levels (between 100 and 80) and the RSI has either turned down or is trading below 50.

NOTE: If filled, we will place a protective buy stop behind our short position at $29.10. This should limit our loss on this trade to $33.00 before commissions (assuming we receive a fill at $28.77)

And this would be in line with the old Korean Trading Principal which says "Don’t lose money. If you do lose money, lose very little money."

Until Next Time.

Thanks for listening; Good Luck in your Trading; And May the force of volatility be us!

Best Regards,
Patrice V. Johnson

E-mail : Patrice@stockbarometer.com if you have any questions about this trade or any other questions or comments.

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