Three ETFs to watch now!

Hi, welcome to this new video. If you have not yet subscribed to this channel, please do it now. So you will be updated every time I upload a new video. Today I want to discuss with you about what's going on in the market and also I want to give you three suggestions, three ETFs that you can watch that are really, really interesting right now. But this will be later. Let's start with the analysis of the US market, the SPY ETF tracking the S&P 500. And you can see that yesterday there was a big red candle as you see here. And this means that the market went down and it went down by, you can see here, 0.89%. Now in the previous video I said that the market was quite overextended and you should have tightened your stop loss if you were in. And that's what I did. So just to show you, this is one of the ETF that I was invested in and yesterday I hit stop loss is the XLC Communication etf. So I enter around here at the breakout. Let me show you around here. After the breakout from this resistance and the trend was very, very nice, but it started to get overextended. So as I said, I raised my stop loss around here and yesterday I exit with a nice profit. If I didn't suppose that this downtrend continue, you can have a big loss of unrealized profit. And this is about the US market. But that's not the main objective of this video. What I want to discuss, as I said in this video, is three ETFs that you can watch that can represent good opportunities maybe soon to enter for the long term perspective. So let's move to these three ETFs. First one is the DBC. DBC is commodity ETF is tracking commodities and as you can see pretty clearly here, is basically in a free fall in the long term perspective. Well, the price is still not bad, is not too high, not too low, is fair I would say. But if you look recently, what happened there was this support level around 1480 and then the price went above 16, 16.3 here. And then there is this very big huge fall like Yesterday went down 1.5%. So what can you do in this situation? Well, as the price is very close to the support, what you could do is to wait. And when the price is in this area, okay, around the support, because remember, support here I draw a line. But support is more a zone, it's not a line. So when the price is around here and you see a reversal candle, for example, a green candle after a red one or some other indication that the price may be going back up, then you may enter. That could be a good entry point. An alternative that is also interesting if you know how to use options, is to sell put options at 15. That's what I did because for this ETF the strike prices are either 14 or 15. So I sold a put option at 15 and I got around 2%. So it means that if the price at expiration is above 15, I will keep the premium. If the price is at 15 or below, I will have to buy at 15. But it's fine. I mean I'm happy to buy at 15. So remember, DBC is one of the possible good ETF to put in your watch list. Then let's move to China. Probably. You know, if you read the news that these days there is this big problem of the virus spreading in China and, and this of course affected the market, this could be also that we have an opportunity to buy a discount. Of course, if you believe that the Chinese market is going to do well this year. That I believe. And I want to suggest you two ETFs here. The first one is ASHR that is tracking a basket of Chinese companies and you can buy that in the US market. So again if you look at the long term perspective, well, the price is middle level I would say. So if you expect that there will be a rally is probably not a bad time to buy. And especially because looking at what happened in the recent months, well there was this resistance level again here as you can see and then it was broken around here and the price went up to around 31 and now is falling back, actually went down 1.31% yesterday. But as you can see, the trend is basically still up. Okay, so what is going to happen? Well, I will wait for the price as for DBC to show me that there is a bounce, for example with a green candle, some indication that the uptrend is continuing. But we don't know, we don't know how big the virus issue is. Especially now in this period of Chinese New Year. A lot of people are traveling in China. So it may be that there will be many more cases that will trigger an even further drop of price. That's why I'm saying when you are in this situation, wait for a confirmation that the price is going up again. And another thing that you can do is to enter in fraction. So instead of putting all your money that you want to invest here in a single shot you can start to buy first, let's say at 30% and then you add more when the price keep going up. And if the price keep going down, you wait for another possible reversal. And this is interesting because as for dbc, when you have this kind of drop and the volatility is high, you can also sell put options to get premium. And I did for another etf, that is the third one I want to share with you today. And this ETF is K Web. This is again China but is more oriented to technology, kind of Internet based companies. So what was going on here? Well, similar story, long term perspective. Well, not too bad. Now the trend is up. Yes, there was a resistance here and the resistance was as you can see here and then here there was a big green candle, a huge breakout and then the price went up and now it went up. Look at here. I don't know if you can see, maybe I can zoom in. It went down, it went down 3.03% yesterday. This is the big, the big red candle that you can see here. Now why is this interesting? Because again is going down and is next to the 50 moving average. It means that we are potentially near a support level. Right. And also is near to the resistance level. That could be a support now. So what I will do in this case I will either wait for a reversal. As for the others, you don't want to to catch a knife that is in a free fall because you don't know how low it can go. Especially because as I said, we don't know about this virus, what will happen especially in this Chinese New Year period and how other countries will be affected at the same time. Another thing you can do is to sell options. And that's what I did. I sold an option at 49 that is around here and I got around 3% premium. So this is another technique that you can apply. And as I said before, it means that if at expiration the price is above this level, then I keep the premium. If it's below or at this level, I have to buy at that price at 49. So that's what I wanted to share with you. So just to recap again we have three ETFs. One is the B C and this ETF is tracking the commodities. A second one is A S. Oh God, let me, let me rewrite that. So we have a S H that is tracking a basket of Chinese companies. And then we have this one that is KWEB and KWEB as I said is still Chinese company but is focusing on technology. Internet companies. And the nice thing about these three ETFs is that all of them can be bought in the US market. So even though you are buying, you are getting exposed to the Chinese market. You can still do it. For example, this is the Tinkorswim platform and this is only for the US market. That's another nice thing of ETFs. You can get exposure to things like these or DBC commodities where maybe you need futures to do that, but you can also do with an etf. So with that I would like to thank you for watching this video and you can like it. You click like if you like it, I hope it gives you some good insights and maybe something useful for you to potentially profit from this panic that is spreading in Asia now. And also you can click the bell to be updated when I upload new videos. And as usual, if you have not yet done so, you can subscribe to this channel to support me and to show me that this content is something that you like and you would like to see more. And with that, thank you very much for watching and see you next time.