RSI25 is one of the successful strategies developed more than five years ago and detailed in High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading. In back-testing on 20 of the most liquid ETFs for as long as the ETF had been traded, a period of up to 15 years, 77% of…    [Read More] 

After Friday’s gain, SPDR S&P 500 (NYSE: SPY) has closed above its 5-day moving average (MA) for 26 consecutive days. The chart below, from the PowerRatings web site, shows SPY with its 5-day MA. For most of the past five weeks, SPY has been overbought with a PowerRatings of 3. PowerRatings are based on the…    [Read More] 

Leveraged ETFs can make large price moves in a short amount of time an attribute that makes them appealing to short-term trades. With the right strategies, leveraged ETFs can be profitable for short-term traders. In the guidebook Trading Leveraged ETFs with ConnorsRSI we provide details on two dozen strategy variations with a win rate above…    [Read More] 

Through back testing and experience, we have demonstrated that buying dips is one of the most effective trading strategies for short term trading. This idea can be quantified in a number of ways. Specific rules with test results are presented in the book High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading….    [Read More] 

Traders might be struggling to understand the direction of the long-term trend in stock prices after last week’s 4.2% rally in SPDR S&P 500 (NYSE: SPY). That ETF has now retraced more than half of the 9.9% decline that began in September. SPY is now once again above its 200-day moving average and is overbought…    [Read More] 

Last Monday, SPDR S&P 500 (NYSE: SPY) closed below its 200-day moving average (MA). We have demonstrated the importance of trading in the direction of the long-term trend for many years. How Markets Really Work is a book that we first published in 2004. Based on data, we determined that the direction of the long-term…    [Read More] 

The stock market is now showing signs of weakness that can no longer be ignored. ETFs tracking major market indexes include a few potential buys and two that should be avoided if the goal is to buy a short-term pullback in a long-term uptrend. The table below shows several index ETFs. Because iShares Russell 2000…    [Read More] 

SPDR S&P 500 ETF (NYSE: SPY) recovered from Tuesday’s selloff with a 1.75% gain on Wednesday. The rally was broad with 78% of New York Stock Exchange-listed stocks ending the day up. On the NASDAQ, 69% of stocks were higher for the day. Despite the large gains in many stocks, there were a number of…    [Read More]