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!
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.
Related Posts
- 11/11 - ETF Trading - No Trades Today I have no trades to recommend today. The broader market closed higher yesterday and is now moving toward an over-bought condition. A few more days of market gains should trigger new short trading signals. Our etf trading signals are now weighted toward shorting etfs since SPY and other index etfs......
- 07/11 - ETF Trading - No Trades Today The broader market closed lower on Friday, relieving the S&P 500 of its over-bought condition (see the updated chart for SPY below - notice the RSI 2 dropping below 70). However, we'll make no trades today - another day or 2 of selling will trigger some new etf trading signals.......
- 07/21 - ETF Trading - No Trades Today Stock markets rallied yesterday and the S&P 500 is moving toward an over-bought condition (see the updated chart for SPY below - notice the rising RSI(2) reading). And since the broader market is below its 200 day moving average, a few more up days in the market will trigger new......
Related Websites
- Gold Investing for Retirement I often ask myself whether I and other baby boomers should be investing in gold or gold stocks for retirement. On the one hand, a good financial plan needs an inflation protection strategy and precious metals are favorites as an inflation hedge. On the other hand, gold is notorious for......
- Day Trading Penny Stocks Is Not Worth The Risk Trading penny stocks is one of the many strategies used by investors to try to gain profit in the investment world. Understanding the process, doing your research and weighing all the options are essential to making this strategy work for you. The definition of day trading is buying and selling......
- Exchange Traded Funds a.k.a ETFs It’s time for another investment post in the My First Portfolio series. I hope you have enjoyed reading about Mutual Funds, Stocks , and Dividends. Today we are going to discuss another type of investment option that is available for our investment portfolios. Exchange Traded Funds are also known as......
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!