Correlations and ETF Trading Strategies

As I’ve mentioned a number of times, the markets over the past few months have been highly correlated. Most times markets correlate in one way or another but this correlation is dynamic, not static. These correlations tend to especially vary when you look at bonds versus the S&P for example, or oil versus the S&P.

This past weekend I had the good fortune of teaching a seminar on ETF trading to a very smart group mostly made up of professional traders. When we got to the correlation part of the seminar, one of the participants was kind enough to share his favorite site for identifying and measuring correlations.

The site is Asset Correlation and I’d suggest you spend some time on it. It does a number of things for you to understand just how correlated your trading positions are. Special thanks to Jack L. for making me and everyone at the seminar aware of this site.

Every day in our Battle Plan we’ll provide you with incisive, before-the-bell commentary and analysis on the day’s markets to help put your trading in context. We’ll give you suggested entries and exits for short term trading opportunities in stocks, ETFs and options that may be only hours away. And we’ll give you what many other people can’t: model-driven percentages so that you know the historical win rate going back to 1995 for every single trade idea-long and short.

Give the Daily Battle Plan a read before the next market open. Click here to start your subscription or call us today at 888-484-8220.

Larry Connors is CEO and Founder of and Connors Research.