9/28 – ETF Trading – FXI, EWW, USO, UCO, XLU, UPW

Good morning. Friday’s stock trading action gave us just a few opportunities to scale into our etf trades. Here’s where you should be:

You should be long in the first position for any of the following etfs that I listed last Thursday (9/24).

FXI, EWW – Country ETFs: These moved higher on Friday, but not enough to trigger our exit signals. We’ll patiently wait for the market to make a move. (The highlighted bar in the charts shows today’s etf trading action.)

USO, UCO – Commodity ETFs: A bit of divergence here with USO moving a bit higher and UCO moving a bit lower. Per our rules, that means holding steady on USO and buying an additional position on UCO. However, in my own opinion, when there is divergence between an index etf and a leveraged copy of the index etf, I would follow the signals from the index etf – USO in this example. So, since USO moved higher on Friday, we’re invested only in the intial positions we took for USO and UCO on Thursday.

XLU, UPW – Sector ETFs: These moved lower on Friday. You should have added a second trading position in these etfs.

Our etf trading strategy is to buy additional positions should any of these etfs move lower than our initial entry price. Otherwise, our exit signals are a closing price greater than MA(5) or the RSI(2)>70. It’s your call on which exit signal to use.

All of these trades are based on the strategies found in the book by Larry Connors: High Probability ETF Trading. All trades are at the market close.

Join me every day as I offer new etf trading strategies for you to follow.

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.

• 07/12 - ETF Trading - XLU, SDP, SPY, SDS XLU closed higher on Friday, enough to trigger taking a third and final short position. The higher closing price for XLU also triggered a third and final etf trading position for SDP. We'll watch for our etf exit signals now. SPY also closed higher on Friday, triggering a second short......
• 06/03 - ETF Trading - DIA, DDM Put DIA on your watch list today. Consider taking your first long position should the etf close lower today. Consider DDM for the leveraged trade. DIA - Dow Diamonds seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones Industrial......
• 12/7 - ETF Trading - EWC, USO, UCO Good morning. Futures are down this morning, suggesting a market pull-back, and ideal for our etf trading set-ups. Put EWC and USO on your watch list. Take an initial position should these etfs move lower today. For a leveraged trade on USO, consider UCO. All trades are at the market......

• Trading Stocks Guide 2 Stock trading has numerous benefits as a viable part time occupation. In contrast to a second job, there are no special qualifications to begin. The stock market doesn’t care about your level of success, education, ethnic origin or any personal characteristics. Complex employers, office politics or difficult employees do......
• Are ETFs a Good Way to Create Secondary Streams of Income? ETFs, or Exchange Traded Funds, are all the rage in the investment world, but so far, they really don’t have much of a track record. This is a fairly new method for investing and the long term data just isn’t there to determine how effective these investments can be over......
• The Truth About Trading Stocks For A Living Nobody will tell you. Through the years of research and planning I have done on this very topic I have yet to find an actual answer to this question. I have plotted out scenarios, created excel worksheets that would make your head spin, even read numerous books on the matter.®.....