09/15 – ETF Trading – SPY, SH, SDS

SPY closed higher yesterday, with an RSI 2 greater than 75, giving us a short trading opportunity. Should it close higher today, consider taking your first short position in the etf trade.

SPY – The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index.

Can’t short SPY? Consider trading long the inverse etf SH or the double inverse etf SDS – please trade carefully.

SH – ProShares Short S&P500 seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the S&P500® Index.

SDS – ProShares UltraShort S&P500 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P500® 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. You could also take positions in a 20-30-50 ratio.

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

Assuming we take the inverse trade, our exit signals for SH are triggered when the closing price for SH is higher than it’s 5 day moving average, or – for a potentially larger gain – when the RSI 2 is greater than 70. Trade SDS similarly.

Learn why SPY is 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.

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.

—–

Don’t like this trade? Find out how a stock trader can turn $1000 into over $1 Million in 38 trades …

—–

• 09/08 - ETF Trading - No Trades Today We'll make no trades today. The broader market closed higher yesterday and is now moving toward an over-bought condition. Another day or 2 of higher closes will trigger our short etf trading signals. Our etf trading signals are now weighted toward shorting etfs since SPY and other index etfs are......
• 12/03 - ETF Trading - No Trades Today The broader market closed higher yesterday, leaving SPY in an over-bought condition (see the updated chart for SPY below - notice the high RSI(2) reading). And, as we discussed yesterday, we will not take a short trade. A market correction will help trigger some new etf trading signals. When we're......
• 04/18 - ETF Trading - Gain on SPY, SSO We took a small gain on our S&P 500 etf trade - our exit signals for SPY triggered with Friday's rally and we took a gain of .43% at the close. The leveraged etf trade in SSO yielded a gain of .92% - all in a 3 day trade. We......

• Great Debates: ETFs vs. Index Funds It's been a while since I've done any Great Debates; for all the disagreement and squabbling about individual investments and the direction of the country that you hear, there's a surprising amount of uniformity as to what constitutes sound investment advice. Invest early, invest often, don't spend too much time......
• Etf Trading Membership But, if you're looking for the longer term investments that have proven to win over the last year, continue to win RIGHT NOW, and are predicted by the most sophisticated stock trading system I've ever seen to continue to be winners in the future, even in this economy, then ETF......
• Gartman's Rules of Trading Every year Dennis Gartman publishes his "Rules of Trading." Here they are.DENNIS GARTMAN'S NOT-SO-SIMPLE RULES OF TRADING1. Never, Ever, Ever, Under Any Circumstance, Add to a Losing Position... not ever, not never! Adding to losing positions is trading's carcinogen; it is trading's driving while intoxicated. It will lead to ruin.......