08/09 – ETF Trading – XLE, DIG

Wow – yet another sell-off yesterday. If you bailed on the trade, I don’t blame you. I don’t think you can ever totally remove human emotion from a trade even when you’re armed with etf trading strategies that have years of positive market proof. A market crash is just plain sickening if you’re on the wrong side of the trade.

Take another look at the article by Larry Connors about protective stops. Years ago, he wrote a report explaining why trading stops can actually hurt your trading returns. You can read more about this here.

With that in mind, we’ll continue to wait for our etf exit signals to trigger. XLE closed strongly lower yesterday. XLE is still severely over sold and is due for a correction – notice that the RSI 2 is still less than 1!

So, our etf exit signals are triggered when the etf price is greater than it’s 5 day moving average, or – for a potentially larger gain (or smaller loss) – when the RSI 2 is greater than 70. We’ll be using the latter. Let’s get out of this trade.

Follow the signals for XLE when trading DIG. Updated charts are posted below. All trades are at the market close. Please trade responsibly!

Join me everyday to follow these etf trading signals. All of the signals and strategies I use for etf trading are found 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.

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Can’t make a trade? Let Warren Buffett manage your portfolio – AlphaClone

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