GLD, above, also had a couple of successful trades using this method. Note the buying indication in late July, and the selling indication in September. Notice how, on these charts, stochastics gave buying indications in advance of the moving average crossovers, which then confirmed the stochastic moves, and allowed you to ride the trend. To conclude, combining stochastics and moving averages can ferret out some interesting and profitable moves in the markets. Sometimes the best part of the move occurs when the stochastic becomes overbought or oversold, without giving an opposite indication. We use this indicator to get the jump on a moving average signal, and then use the moving averages to add more to, and then close out a trade.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the PowerShares DB Oil Fund where we have detected an approximate $80.8 million dollar inflow -- that's a 29.1% increase week over week in outstanding units (from 22,000,040 to 28,400,040). START SLIDESHOW:Click here to find out which 9 other ETFs had notable inflows » The chart below shows the one year price performance of DBO, versus its 200 day moving average: Looking at the chart above, DBO's low point in its 52 week range is $12.35 per share, with $30.99 as the 52 week high point — that compares with a last trade of $12.86.
Investors in DB Oil Fund saw new options become available this week, for the March 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DBO options chain for the new March 20th contracts and identified one put and one call contract of particular interest.
In trading on Thursday, shares of the PowerShares DB Oil Fund ETF entered into oversold territory, changing hands as low as $13.30 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.
Investors in DB Oil Fund saw new options begin trading this week, for the February 2015 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DBO options chain for the new February 2015 contracts and identified one put and one call contract of particular interest.