Battle Plan Reaches 84% Correct As Traders Lock in Gains in SPY, FXI
What were you doing in the minutes before the market closed on Tuesday?
If you were a trader who subscribed to Larry Connors’ Daily Battle Plan, then the answer can be found in two words:
Taking Profits.
Click here to start your free trial to the Daily Battle Plan!
Larry Connors’ Daily Battle Plan is now 42-8 since October 2008. On the close Tuesday, Battle Plan traders were able lock in gains for short-term trades in two exchange-traded funds (ETFs) – the SDPR S&P 500 ETF
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PowerRating) and the iShares FTSE/Xinhua China 25 ETF
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PowerRating) – that had been highlighted as potential high probability trading opportunities just under a week ago.
Wrote Larry Connors on October 1st in the Daily Battle Plan:
“Today, the market is basically in the same position (as yesterday), but there is early market weakness which may get some ETFs closer to reaching the early stages of being oversold.”
And one day later, on October 2nd, he noted:
“Very good sell-off yesterday and as you can see from today’s list, it took many ETFs into oversold territory. It also allowed us to put on a first unit scale-in … We’ll look to add to these positions … if they continue to drop in price.”
A few days later, both the SPY and the FXI, which had been pulling back into oversold territory above the 200-day moving average, rallied strongly, providing Battle Plan traders with the opportunity to sell into strength for gains of 2.95% and 4.93%, respectively.
This is the essence of high probability ETF trading – a hallmark of Larry Connors’ Daily Battle Plan. Battle Plan traders look to buy oversold ETFs trading above their 200-day moving averages, and to sell those ETFs into strength as the market recovers. This professional, mean reversion approach to short term trading is backed up by quantified testing of hundreds of widely-traded ETFs in thousands of simulated trades going back to inception (1993 in the case of the SPY).
With the addition of both Leveraged ETF trading and ETF PowerRatings, Larry Connors’ Daily Battle Plan makes it easier than ever for short-term traders to find the best ETFs to trade every day. So if you are looking to make 2009 the year you took your trading to the next level, then click here to launch your free, 7-day trial to Larry Connors Daily Battle Plan.
Past performance may be no guarantee of future results. But as of Tuesday’s close, I can think of at least 42 reasons why more and more traders have decided to start trading high probability ETF strategies with Larry Connors and the Daily Battle Plan.
David Penn is Editor in Chief at TradingMarkets.com.