EDUCATION: THE OPTIONS LIQUID EXCHANGE-TRADED-FUND LISTLiquidity. Liquidity. Liquidity. Whether you're short strangling, iron condoring, laddering out short puts, or doing covered calls, having excellent options liquidity is the cornerstone of any options trade, and the universe of highly liquid options instruments is actually quite small relative to the smorgasbord of underlyings out there. I've posted my list of highly liquid exchange-traded-funds at various times in chat rooms, but thought I'd set it out here for easy reference. Here they are, in alphabetical order, along with a brief description of what they are:
BKLN (Leveraged Loan Index)
DIA (Dow Jones)
EEM (Emerging Market Equities)
EFA (MSCI ex. Canada/U.S.)
EMB (Emerging Market Bonds)
EWA (Australian Equities)
EWW (Mexican Equities)
EWZ (Brazilian Equities)
FEZ (Euro Stoxx 50)
FXI (Chinese Equities)
GDX (Gold Miners)
GDXJ (Junior Gold Miners)
GLD (Gold)
HYG (High Yield Corporate Bonds)
IWM (Russell 2000)
IYR (REIT)
KRE (Regional Banks)
LQD (Investment Grade Corporate Bonds)
MUB (Municipal Bonds)
QQQ (Nasdaq 100)
SLV (Silver)
SMH (Semiconductor)
SPXL (3 x Leveraged Bullish S&P 500)
SPY (S&P 500)
TLT (20-Year + Average Maturity Treasuries)
TQQQ (3 x Leveraged Bullish QQQ)
UNG (Natural Gas)
USO (Crude)
UVXY (1.5 x Leveraged Volatility)
VIX (Volatility)
VXX (Volatility)
XBI (Biotech)
XLE (Energy)
XLF (Financials)
XLI (Industrials)
XLP (Consumer Staples)
XLRE (REIT)
XLU (Utilities)
XME (Metals and Mining)
XOP (Oil and Gas Exploration and Production)
XRT (Retail)
UUP (Dollar Index)
And sorted by type:
BROAD MARKET EQUITY:
DIA (Dow Jones)
EEM (Emerging Market)
EFA (MSCI ex. U.S./Canada)
EWA (Australia)
EWZ (Brazil)
EWW (Mexico)
FEZ (Euro Stoxx 50)
FXI (China)
IWM (Russell 2000)
QQQ (Nasdaq 100)
SPXL (3 x Leveraged Bullish S&P 500)
SPY (S&P 500)
TQQQ (3 x Leveraged Bullish QQQ)
BONDS/FINANCIAL INSTRUMENTS:
BKLN (Leveraged Loan Index)
EMB (Emerging Market Bonds)
HYG (High Yield Corporate Bonds)
LQD (Investment Grade Corporate Bonds)
MUB (Muncipal Bonds)
TLT (20-Year + Average Maturity Treasuries)
SECTORS:
GDX (Gold Miners)
GDXJ (Junior Gold Miners)
KRE (Regional Banks)
SMH (Semiconductors)
XBI (Biotech)
XLE (Energy)
XLF (Financials)
XLI (Industrials)
XLP (Consumer Staples)
XLRE (REIT)
XLU (Utilities)
XME (Metals and Mining)
XOP (Oil and Gas Exploration and Production)
XRT (Retail)
REITs:
IYR
XLRE
COMMODITIES/CURRENCY:
GLD (Gold)
SLV (Silver)
UNG (Natural Gas)
USO (WTI Crude Oil)
UUP (Dollar Index)
VOLATILITY:
VIX
VXX
UVXY
Exchangetradedfunds
TQQQ ETF Oscillator still declining despite price bouncing!We have overlapped our oscillator on top of price and our oscillator is still declining despite the bounce from the last few days. This will not last long so either price catches down to the oscillator or price needs to explode higher to pull the oscillator higher.
VXX ETF Hits Price Target!We wrote an article on our website and posted here on TradingView that the VXX looked ready for a big move to the upside. The VXX has hit the price target we suggested at $22. A more detailed analysis of this trade is on our website titled "Trading ETFs While Volatility Explodes Higher".
iShares TIPS Bond ETF: Possible Top. Sell opportunity.TIP has potentially priced a top on the 2019 aggressive rally that started last with last November's bottom. 4H is already pulling back STOCHRSI = 8.271, STOCH = 41.432). The Golden cross took place in March and the MA50 has been acting as a Support since then. Based on the last two occurrences, the price should now consolidate around the 1D MA50 before making a more aggressive sell move into the new bear market. Our first TP is 113.30.
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USO: Well supported on the long term.The United States Oil Fund has most likely completed its technical pull back on the 1W scale and has resumed the bullish bias (RSI = 57.828, MACD = 0.080, Highs/Lows = 0.2614). Being well supported by all the underlying trend lines, this is probably an early buy signal towards the 16.25 1W Resistance. We are long on USO with TP = 15.00.
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Invesco QQQ Trust: Pull back on 1D and lower buy opportunity.This ETF is on a bearish reversal following its April All Time High. 1D has turned bearish (RSI = 42.019, Highs/Lows = -3.1729, ADX = 32.374) and since it just crossed (though marginally for the moment) the 1D MA50, we are to ring some alarms for further bearish potential.
A similar RSI pattern was performed in January - February 2018. After a new (then) All Time High, the price again pulled back, crossing the MA50 and then finding support just above the MA200. An equally aggressive rise followed and test of the previous High in the form of a Head and Shoulders pattern.
On the present formation, the RSI was also rejected near 83.8000 and is approaching the 30.000 support. Having breached the MA50 on 1D we expect a similar candle sequence to emerge, with further selling towards the MA200 and then strong bounce.
We are buying this pull back with TP = 191.40.
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FOR 45 DTE SETUPS, ROTATING INTO ETF'SSometimes life just plain ass gets in the way of your trading ... . Starting October 1st, my "number's up" for jury duty for the entire month of October. I may be called to serve any time during this period, sit for a lengthy period of time in a room, and then be excused because the parties have reached a last minute agreement or I may have to sit through an actual trial that goes on fairly continuously for a week or two. In sum, there's no way to plan your day, your week, or, really, your month ... .
Since I don't think the environment will be very conducive to trading (even assuming I could do that effectively on my phone or iPad), I'm going to go with trading low key setups that I don't need to keep an eye on, as compared to, for example, short strangle earnings trades with short DTE. As of Friday close, there are several >35% ETF's I have eyeballs on -- GDX (gold miners), XME (miners), EEM (emerging markets), EWZ (Brazil), and XBI (36.1).
Most of these are, in the scheme of things, "fairly cheap," so I may go covered call rather than with an options strategy that has a clock on it (i.e., spreads, strangles with "date certain' expiries).
Naturally, we have the "FOMC dance" coming up, so I may hand sit out this week until the tsunami of media spin, speculative positioning and such, passes ... .