07/07 – ETF Trading – XLU, SDP

The S&P Utilities Sector ETF closed higher Friday yesterday, generating an etf shorting opportunity. Consider taking a short position in XLU should the etf close higher today.

If you’re unable to short XLU, consider taking the inverse etf – SDP. However, follow the etf trading signals for XLU. SDP is a double inverse etf – please trade carefully.

XLU – The Utilities Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Utilities Select Sector Index.

SDP – ProShares UltraShort Utilities seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Utilities Index.

We may take up to 3 trading positions over the next couple of days. Our first position is 1/6 of our total trading amount. Our second position is 1/3 of our total trading amount. Our third trading position is 1/2 of our total trading amount. All trades are at the market close. Please trade responsibly.

Otherwise, our exit signals are triggered when the closing price for USO is lower than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30.

Learn why utilities are now a good short etf trading opportunity in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have only a few rules and you’ll be able to back-test and apply the strategies to the next trading day. With easy to follow trading strategies, clear explanations, and years of tested results, there is no better place to start finding new trading edges than in High Probability ETF Trading. Get your copy today and be ready for the next trading session.

Disclaimer:The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

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