ETF (Sectors) swing trading

Quote from inandlong:

For example IYR which was on your watch list. It has traded 7900 shares today. My usual entry is 2-4K shares and then build from there. I don't want to be a significant percentage of any market. And there is a 25 cent spread there right now.

A number of the ETF's trade very low volume that way.
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The traded volume has no so singificance, because even no trade is done as underlying index is going up or down, then specialist has to chnge bid/ask in the right way.
You have to watch underlying index value (like NLR.X for IYR) to know where is actual index price and then send Limit order close to index value. 2-4K shares is no problematic to receive fill.

When I enter trade +/- 5 cents from current index value is OK for me to enter trade.
 
Quote from ShoeshineBoy:

Yes, PPH is what I was wondering about.

All great plays by the way - classic TA with great risk/reward.

I learned a lesson: I was out of town and couldn't get TWS to work with any of the computers I had out there! I heard the mkts had been flat so I just hung in there for a few days. Now I'm scrambling...
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PPH chart enclosed. I feel PPH as weak sector, so I am looking to short them on the resistance downtrendline and also horizontal line.
 

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Now this is interesting. It looks like you use a trendline off of the highs or thereabouts. Some people would say go off of a short term ma like 15 instead. What's worked best for you? I've done little backtesting on short stategies, so I've got to ask someone like yourself with some experience.
 
Quote from ShoeshineBoy:

Now this is interesting. It looks like you use a trendline off of the highs or thereabouts. Some people would say go off of a short term ma like 15 instead. What's worked best for you? I've done little backtesting on short stategies, so I've got to ask someone like yourself with some experience.


Notice all the volume lately and the fact it stalled at the old gap from March. Of course the million dollar question: will it close the gap?
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a) I use MA for confirmation (of trend, strength/weakness) only. Sometimes I can say : "Hey my support or resistance is on MA, it is stronger level" But I do not use them for entry/exit points

b) Yes PPH touched already support level , but I think that such sector weakness can be used for short after a correction with possible good gain. Untill PPH will show something else I thing they are very weak.
 
Huh,

I cannot short XLF today. IB and Ameritrade do not allow them sell short. Do you have the same experience by another brokers ? :confused:
 
I had some trouble recently with OIH as well.

Also: the IB customer service person told me that IB requires an uptick for shorting even with an ETF. That's not normal is it?
 
Quote from ShoeshineBoy:

I had some trouble recently with OIH as well.

Also: the IB customer service person told me that IB requires an uptick for shorting even with an ETF. That's not normal is it?
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Yes, IB has a real problem keeping an inventory of OIH to short. It really sucks. I've questioned them about this several times over the past year & I keep getting the same canned (pat) answer. Bummer! (They also have problems with TLT and IWM).

I also encountered the same problem-answer from customer service on shorting an ETF w/o an uptick but persistence got t.p. (Chairman Thomas Peterffy aka Charmin Toilet Paper) involved and IB resolved the issue on that particular ETF (SMH) were I was experiencing problems.
 
Quote from Hugh G Recshun:



Yes, IB has a real problem keeping an inventory of OIH to short. It really sucks. I've questioned them about this several times over the past year & I keep getting the same canned (pat) answer. Bummer! (They also have problems with TLT and IWM).

I also encountered the same problem-answer from customer service on shorting an ETF w/o an uptick but persistence got t.p. (Chairman Thomas Peterffy aka Charmin Toilet Paper) involved and IB resolved the issue on that particular ETF (SMH) were I was experiencing problems.
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Are you saying that you got them to get rid of or "soften" their uptick rule on a particular ETF? Why do they even have an uptick rule for an ETF? So far I've always seen IB to have a decent reason for why they do things. The customer service guys have a pat answer and say it's cuzz of "software" reasons. It sounds like you've dealt with this head on. Any idea what's really going on?
 
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