ETF Trading – USO, UCO, EWH, IWM, UWM
With the sell-off yesterday, a lot of buying signals triggered. We’ll focus on just a few.
We’re still in the trade for USO and UCO and we’ll take our gains on the RSI(2)>70 signal. Those who sold on the (MA)5 etf trading strategy made some nice gains.
We took a second position in EWH yesterday. Consider adding to the position should it close even lower today.
One new etf trading idea to look at is IWM and/or UWM. The iShares Russell 2000 Index Fund (IWM) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index.
ProShares Ultra Russell2000 (UWM) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Russell 2000® Index.
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. Please trade responsibly!
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Hello Seth,
Good work with the blog. Hope you have been putting some of these good calls on and plumping up your trading acct.
I am wondering if you also follow the High Probability signals that identify short sale opportunities. If so, I may have missed the posts where you identified shorting. Wondering if you have a bias toward long positions with ETFs.
I know that some of them can be hard to borrow and therefore hard to short. Tried to short the TLT on another strategy last week and was told they could not “locate” the shares. Anyway, just wondering …
Thanks for the compliments!
I don’t always make all the trades – I have a limited amount of funds and don’t want to be fully invested. But it’s fun to play!
For shorting, the rules are to short stocks and etfs only when they are below their 200 day moving average, and their RSI(2) is greater than 90 (or other higher level you specify).
And you don’t have to actually short the etf. For example, to short SPY, you could go “go long” with SH or SDS. That’s something you can’t do with stocks!
True point re: the SPY / SDS
From what I have seen thus far, what you and the authors say about the relative reliability of the nation-based or regional/geographic etfs appears to be true. So when it comes time to short etfs like the RSX (Russia) or the EWC – the likelihood of an inverted etf that covers those type of etfs may be pretty low.
Hopefully, you maybe know something I don’t re: inverted country/regional etfs. I’m more than happy to be wrong (when the market is closed, that is
!)
There are a few that I know of – for example FXP: ProShares UltraShort FTSE/Xinhua China 25 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index.
See ProShares.com for more!