TGIF! Hope everyone had a great week and is looking forward to the weekend. I moved from Cincinnati, OH (my hometown for many years) to my new home of Chicago, IL. This weekend will be filled with unpacking, organizing, rearranging, and lots of other stuff. Anyways, yesterday, we had a successful day. We got involved with the inverse oil ETF Direxion Daily Energy Bear ETF (ERY). This ETF was a good play as the oil market dropped hard in the morning. We got involved at 9.80, which was our adjusted entry per my Morning Levels Alerts and we were able to exit at 10.00 for a 2% gain. We were hoping for a bit more, but 2% is better than nothing. Our Short Sale of the Day with Gildan Activewear Inc. (GIL) became a no play when I adjusted the entry range down with the Morning Levels Alert; however, I did rerecommend the trade at 31, and some were able to make a nice move off of that.
We want to sell JCP to start the morning, and we will be taking a loss on this one. The trade did not work in our favor due to some bad retail earnings from the department store sector that I was not expecting.
Let’s get into the final plays of the week…
Buy Pick of the Day: Ultrashort Proshares Real Estate (SRS)
Analysis: The market is definitely looking to open down, and futures continue to grow worse this morning even after a retail sales surprise from the automobile sector. Retail sales rose 0.4% in the month of April, which was less than March but better than the expected 0.2%. The issue was that core retail sales missed estimates of 0.5%, hitting 0.4%, and they are probably more important. Additionally, the market is being driven down by growing fears in Europe that they have over…what do you know…debt building. The European and Asian markets tanked as a whole. The European markets are all down 1.5% – 2%; while the Asian markets all dropped over 1%. It is not good in the world, and fears are building in the American markets.
We want to take advantage of those fears with a solid inverse buy followed up by a sexy short sale. With the market looking pretty bleak this morning, we want to take advantage of the bad news with a volatile ETF. Among the inverse ETFs, the one that…
