09/21 – ETF Trading – SPY, SH, SDS

We have 2 trading positions in our etf trading basket. We’re shorting SPY in this current trading session. You could also trade the inverse etfs – SH and/or SDS.

SPY closed lower yesterday (SH and SDS closed higher), enough to trigger our 5-day moving average exit signal and a gain of 1.09%. For a potentially larger gain, follow our exit signals as stated below; otherwise take a third and final short trading position only if the closing price of SPY moves higher than Friday’s closing price (SH and SDS close lower).

Our short exit signals for SPY are triggered when the closing price of SPY is lower than it’s 5 day moving average, or – for a potentially larger gain – when the RSI 2 is less than 30. We’re using the latter.

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.

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

Learn why the S&P 500 index 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.

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