07/09 – ETF Trading – XLU, SDP, SPY, SDS

XLU closed higher yesterday, enough to trigger taking a second short position. Take a third and final short trading position only if the closing price of XLU moves higher from here. Follow the signals for XLU to make the third and final etf trade for SDP, as well.

SPY closed higher yesterday, triggering our first short position. Take a second short position if SPY closes higher today. If you’re trading the leveraged etf, you have your first position in SDS. Follow the signals for SPY to take a second trading position in SDS.

Otherwise, we’ll just wait for our etf exit signals to trigger. Our exit signals are triggered when the closing price for XLU or SPY is lower than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30. We’re using the latter signal. You’ll exit the leveraged trades on these signals as well.

All etf trades are at the market close. Please trade responsibly.

Learn more about etf trading strategies in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have just a few simple rules and you’ll be able to back-test and apply the strategies to the next trading day. Get your copy today and be ready for the next trading session. Have a great weekend.

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