ETF Trading with Larry Connors: How to Sell ETFs Short 101

How many ways were there to sell short the S&P 500 last week, as the market climbed deeper and deeper into overbought territory below the 200-day moving average?

Whether your trade of preference was the ^SPY^ or, for those in restricted accounts, the SPY’s inverse, the ^SH^, the results on Friday were the same: another profitable trade for short term swing traders trading ETFs with Larry Connors’ Daily Battle Plan.

SPYDBP0906 chart

Click here to start your free, 7-day subscription to Larry Connors Daily Battle Plan.

As Larry wrote in a four-part series for TradingMarkets.com earlier this year.

What we want to do, and what you want to do as a trader with your own money, is ultimately to be able to have certain rules in place to help you answer the questions: is a market in an uptrend? Is a market in a downtrend? And how do I appropriately allocate capital during each of those markets?

To read the rest of Larry’s four-part series on ETF Trading and the Daily Battle Plan, click here.

This last trade in the S&P 500 was a textbook high probability trade from Larry Connors’ Daily Battle Plan. Correct 80% of the time since inception in October 2008 – and with an accuracy rate of 80% in 2011, as well – Larry Connors Daily Battle Plan is a great way for traders way to add a quantified, long and short, ETF trading strategy to their overall swing trading portfolio (and if you are not trading more than one strategy in your portfolio, click here to read “Why a Portfolio of Strategies Beats a Portfolio of Stocks.”).

If you are looking to start trading exchange-traded funds, then Larry Connors’ Daily Battle Plan is a great place to start. Click the link below to launch your free, 7-day trial to Larry Connors’ Daily Battle Plan today.

Larry Connors’ Daily Battle Plan: Quantified, Data-Driven ETF Trading for Short Term Traders

David Penn is Editor in Chief of TradingMarkets.com