07/13 – ETF Trading – XLU, SDP, SPY, SDS

XLU closed higher yesterday. We have a full trading position in XLU and/or SDP, and we’re just waiting for a stock market sell-off to trigger our etf exit signals, now.

SPY closed ever so slightly higher yesterday, enough to trigger taking a third and final short position. The higher closing price for SPY also triggered a third and final etf trade for SDS. We’ll wait for our etf exit signals, now.

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.

Get more information about short 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.

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