ETF Trading with Larry Connors: The Top Three Factors Driving the Market Right Now
That was quite a sell-off yesterday.
There are a few things going in as we head to the last two trading days of July.
1. The debt negotiations will dictate everything. It’s that simple.
2. The secondary factors such as the historical end of the month buying bias (especially after multiple down days), along with the market being so oversold (the U.S. major indices have 2-period RSI readings in the single digits) will play a big role if number 1 is resolved.
3. People are nervous and getting scared. Historically this precedes rallies. There’s lots of money on the sidelines looking to get back in. But again, only if #1 is resolved.
If our elected officials have backed themselves so deep in a corner that there is no way out, then there’s a big problem. Hopefully they come to a compromise, at least for the short term, so the markets can move ahead.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading.
Larry Connors is founder and CEO of TradingMarkets.com.