ETF (Sectors) swing trading
- Thread starter richk
- Start date
Isn't ETF for lazy traders or traders with no edge. As a trader one should look at two things high leverage instrument or high beta. The ETF component stocks with high beta will outperform the ETF substantially. Some of the ETF do not contain stocks which actually make the most move in the sector. Look at the Internet stocks which have substantially outperformed the market this year and see if they are part of the ETF.
Why not basket trade from sector using a foliofn.com kind of service instead.
Why not basket trade from sector using a foliofn.com kind of service instead.
In a sense you're right. You can get to your destination via nascar or in an expedition. It's all how you want the ride to be and how quick and how risky. In my case ETF swing trading is perfect for my lifestyle: relatively easy research, relatively slow moving and trendable. I can't watch a screen cuzz of my work and I can't spend hours on research as I only have a little time each night.
But you're right: the stock selection is murky and questionable often. But the important thing in my opinion is that they do not change significantly midstream.
But I am going to look up foliofn.com as I hate to admint I have no idea what you're talking about...
Nice. That's textbook! What is the meaning of "Target: 73.5 - 72.8 - 72.1"? Is this a variable target depending on circumstances or a covering in three stages?
Now that's an interesting play. I have gotten burned so many times in the last year by breakouts that I'm probably overly cautious. I guess what I'm concerned about is that I'm seeing an SPY that can't quite breakout and a DIA that's barely peeking it's head over the mountain top. The acceleration is apparently coming from the non-behemoths a la IWM, QQQ and MDY. The volume is still pretty dry as well.
I'd love to hear what your take and reasoning was on this. For example, from what you've seen, can the lower valued stocks move the bigger?
Every time I am trying to set up more targets , minimum is 1 maximum is 3. Exit is mostly based on circumstances, but from 1.9. I plan to exit 1/3 or 1/2 of position on Target 1 and let trailing stop (to target 2 or 3 if happens) for rest. Will see, it is mostly of my head and amount of profit .
I looked a little more at what you were talking about and now I see that all broke out of wedges so I'm in there with you but am going to have tight stops and I'm pretty squeamish. But thx for ideas - I didn't consider the "wedge" aspect of it.
I see what you're saying, although it's pretty shallow isn't it? Or do C&H's tend to be more shallow with indexes?
But, anyway, you persuaded me: when I saw DIA, SPY, QQQ down this morning but still above what I considered their breakout, I jumped in on all 3. I've got tight (mental) stops on all 3. If they fall much, I'm outta there.
Thx for the ideas.