Comments on: WEAT (Wheat ETN) Swing Trade Idea

By: Outsource

Outsource — Fri, 23 Aug 2019 22:25:07 +0000

Hi Randy, I was stopped out of WEAT some time ago and was wondering what your thoughts are on a possible re-entry? To me it looks like a down trend line breakout on ZW and a slight bullish divergent low on the RSI (1 Aug & 20 Aug).

Regards Mark from down under.

By: stittb

stittb — Tue, 20 Aug 2019 17:49:24 +0000

Randy
If you get a chance could you have a look at current WEAT levels as it looks to be setting up for price flip.

By: Hoperush

Hoperush — Mon, 12 Aug 2019 18:45:56 +0000

WEAT gap down today .. watching for close, should we decide at 3:45 PM?

By: rsotc

rsotc — Thu, 08 Aug 2019 19:42:01 +0000

In reply to Hoperush. Typically, yes. I will usually determine the suggested stop using a R/R of around 3:1 based on the entry price & final target (3 units of upside to the final price target & 1 unit or 1/3rd the distance down to the stop). However, I will often then adjust the stop a little higher or lower than my preferred R/R on the trade (which is sometimes much higher and on rare occasions, much lower than 3:1) in order to strategically set my stop slightly below any support level that might be nearby. So depending on how much higher you entered a long trade, you may or may not want to use a higher stop. Another consideration if you missed an entry & the trade has started to run is whether or not to take or pass on the trade. Every trade is different but for the most part, if a trade is already 1/2 way or more to the first target, it might be best to hold off & either wait for the stock/ETF/ETN to pull back, ideally for a backtest of the price resistance level or trendline in which it recently broke above to trigger the entry. Feel free to ask if you are considering entering any trade idea, official or unofficial, & I'll let you know my thoughts. All trade questions in the comment section on this home/blog page should be related to the trade(s) ideas covered in the post above (Silver or Gold access) whereas Gold members can post questions on any trades, including their own positions or trade candidates, in the Trading Room.

By: Hoperush

Hoperush — Thu, 08 Aug 2019 19:19:42 +0000

Hi Randy
if I miss an entry when trade is posted , I enter later at higher price , do I change my Stop to higher value or adjust position, what is the best way. I saw the trade idea when WEAT is at 5.37

By: rsotc

rsotc — Thu, 08 Aug 2019 19:14:32 +0000

In reply to thecoinexchanger. WEAT is an ETN so trades during normal stock market hours (9:30-4pm EST) but it tracks (rolls) /ZW wheat futures, which have quirky trading hours. As such, WEAT tends to flatline every day around 2:20pm EST for the remainder of the session. The trading hours for /ZW can be viewed here but keep in mind those are in CST as /ZW trades on the CME (Chicago).

By: rsotc

rsotc — Thu, 08 Aug 2019 19:08:19 +0000

In reply to MattChartier. Sure. Here's a 60-min chart of /ZC with some resistance levels/potential price targets: https://www.screencast.com/t/zlx7rlUz

By: thecoinexchanger

thecoinexchanger — Thu, 08 Aug 2019 17:19:11 +0000

Does weat have shorter trading hours or does it follow standard market

By: MattChartier

MattChartier — Thu, 08 Aug 2019 17:16:32 +0000

In reply to rsotc. thanks ! you have some /ZC level ?

By: rsotc

rsotc — Thu, 08 Aug 2019 16:46:20 +0000

For the most part, yes, as the two tend to run together. I won't add CORN as an official trade though, as that would be like adding QQQ & XLK at the same time... too much overlap due to the very high correlation. Here's the daily chart of CORN with some levels if you're interested: https://www.screencast.com/t/fEAB5VxobbJ