10/17 – ETF Trading – SPY, SH, SDS

SPY closed higher on Friday and continues to remain over-bought with the RSI 2 greater than 75. 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 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 get into the 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.

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

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