12/29 – ETF Trading – Scale In Strategies

Good morning. My stock screener is telling me that we have no etf trading opportunities today. Markets are in an overbought condition. We’ll wait for a stock market pull-back to trigger new entry signals.

Once we enter an etf trade, we won’t always take just one trading position. There are times when we’ll scale in to the trade – sometimes up to 3 to 4 additional positions. And each position gets a bit larger than the previous position. Larry Connors has a great summary of these strategies which you can review – I think you’ll enjoy it.

Here’s an updated chart for SPY showing the overbought condition of the market.

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