A Textbook Pullback, A Textbook Trade in the SPY for Larry Connors’ Daily Battle Plan
“There are very few textbook trades. The trade in SPY was textbook.”
–Larry Connors’ Daily Battle Plan, Monday, February 28
For traders subscribe to the exchange-traded fund (ETF) trading signals of Larry Connors’ Daily Battle Plan, this was the message they received from Larry Monday morning after their full position in the ^SPY^ rallied into strength after a three-day pullback. Traders following along in the Battle Plan had been buying the pullback in the SPY every step of the way, taking a full long position into a very oversold market on the final trading day of the week.
In fact, while new upheaval in the Middle East and soaring crude prices sent many U.S. stock owners on a selling spree, traders following along with Larry Connors’ Daily Battle Plan were taking a different tack altogether.
“World tensions will likely create a significantly lower open this morning. The market, especially the U.S., has been much too complacent. If the SPY closes below XXX.XX, look to buy a first unit long …”
–Larry Connors’ Daily Battle Plan, 2/22
“Solid pullback yesterday and the entire equity world is oversold. Look to buy a second unit …”
–Larry Connors’ Daily Battle Plan, 2/23
“A very good pullback and possibly more coming today. Look to buy a third unit …”
–Larry Connors’ Daily Battle Plan, 2/24
By the time the stock market opened on Friday morning, the SPY, along with most of the U.S. equity ETF market, was deeply oversold and many stocks appeared to be in freefall. In Friday morning’s Battle Plan, Larry told subscribers in part:
“The market remains oversold and is now due for a bounce within a few days. Lock in your gains on the SPY position on a close above XXX.XX.”
That bounce came swiftly. By the time the dust settled on the close on Friday, the SPY had rallied into strength. Battle Plan traders who had bought the pullback – and continued to scale-in as the market became increasingly oversold – were able to lock in short-term gains on Friday’s close and spend the weekend safely back in cash.
This is the world of short term, high probability ETF trading as described in the book by Larry Connors, High Probability ETF Trading. More importantly, this is the world of short term, high probability ETF trading as practiced by the traders and subscribers to Larry Connors’ Daily Battle Plan.
If you are looking for clear, objective analysis on quantified, short-term edges in exchange-traded funds, then click here now to launch your free, one-week trial to Larry Connors’ Daily Battle Plan. Since inception in October 2008, Larry Connors’ Daily Battle Plan has recorded 68 winning trades, 16 non-winning trades and an accuracy rate of 81% in exchange-traded fund (ETF) trading. That’s 81% correct over the past 29 months.
Larry Connors’ Daily Battle Plan comes with Larry’s daily pre-market analysis and audio commentary, Charts of Interest, and a Plan of Attack with specific trading suggestions – including when to enter and when to exit. The Battle Plan is fully archived, so traders can go back to any time in the history of the Battle Plan’s Model Portfolio to see and hear exactly how Battle Plan traders were prepared to take advantage of some of the biggest short-term trading opportunities in ETFs from the SPY to the ^QQQQ^ over the past few years.
To start your free, 7-day trial to Larry Connors’ Daily Battle Plan, click here now – or call us directly at 888484-8220, extension 1 today.
David Penn is Editor in Chief of TradingMarkets.com