Trading Strategy for ERY ETF

I recently went Long on ERY ETF early last week mainly because I felt that ERY is currently at its major support level (9 month trend).  At the same time, the stock market indices such as S&P
500 is near its long term 50% Fibonacci  Retracement level at 1,121.  ERY should bounce off this support level and rally higher into $12-$14 but so far it has been trading pretty much sideways.  With a little more patience, hopefully I should see ERY start moving higher this week.

In looking at a 9 month chart, there has been three major rallies after reaching support at near $10 range.  First rally occurred in October 2009 and took 9 days to reach its peak ($13 range).  The second rally occurred in January 2010 and took 8 days to reach its peak ($14 range).  The last rally occurred in May 2010 and took 8 days to reach its peak ($14 range).  Not sure if we will experience another major rally this time but the potential is there.  If S&P 500 fails to break its long term 50% Fibonacci Retracement level and start heading down towards $1,040 level, then ERY will follow and make a rally just like past three times.

Other Posts:
The Weekend Rule
What Lessons Can We Learn From Worst Performing Stock in 2010?
How Do You Plan To Trade CAGC? 
Fibonacci Retracement Levels in S&P 500 Index

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