EUO
Stronger US Dollar vs EUROClearly, the US dollar starts a new bullish rally against Euro.
How could we benefit from this?
we can use leveraged ETFs, like EUO (2x) exposure
This ETF is designed for investors looking to bet against the performance of the euro relative to the U.S. dollar or to hedge against existing euro exposure. EUO utilizes daily leverage, meaning that its objective involves achieving amplified returns over a single trading session, and that performance over multiple sessions may not correspond to the target multiple. Given the targeted focus and use of leverage, EUO is probably not appropriate for most investors; it should never be used in a long-term portfolio and makes sense only for those with the willingness and ability to monitor and rebalance their portfolio regularly. For those looking to make a bet against the eurozone currency, this fund can be useful, but, for most investors, it shouldn't be used at all. ULE offers a way to bet on the euro, while DRR, an ETN, offers generally similar exposure.
BEARISH SETUP for ULE (2x EURUSD in a single day)BEARISH SETUP for $ULE (2x EURUSD in a single day)
Waiting to be returned to 2015, early Dec. levels
ETFs potential BUYS -XPH-EIDO-EUO-XBI-BIBFor Monday’s open, 5 ETF's are potential buys under my rules for Pullback Strategy. This strategy identifies oversold ETFs and takes advantage of the tendency for prices to revert to the mean in the short term.
The ETFs set up as potential buys for Monday are listed in the table below:
XPH -SPDR S&P Pharmaceuticals
EIDO - Indonesia Invstble Mkt Idx MSCI
EUO - Ultrashort Euro Proshares
XBI - SPDR S&P Biotech
BIB - Ultra Nasdaq Biotechnology Prosh
Euro completed major measured move and reacted to major TL test.Natural area for the EURUSD to consolidate and digest the recent major down move. H/S target achieved at 1.30158 and price bounced off major down trend line that has defined pivot areas of supply and demand since 2013 (dotted black line - see shaded circles for times that price has pivoted off of this line.
Would not be surprised to see a counter trend covering rally develop soon to squeeze late to the party short sellers.
Look to reset short sales at 1.3015 and ideally 1.32-1.3250 range
