ETF Trading with Larry Connors: Traders, the Fed and Operation Twist

Stocks remain mixed heading into trading on Wednesday. Down two and closing in oversold territory below the 200-day moving average is the ^IWM^, while pulling back into neutral territory just above the 200-day is the ^QQQ^.

All eyes will be on the Fed today, as traders await news of potential action on interest rates, including the debut of Operation Twist, a plan to keep rates low by buying longer-term securities for its portfolio.

Read more about Operation Twist here (“Fed’s ‘Operation Twist,’ Explained in 4 Easy Steps”).

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.

David Penn is Editor in Chief of TradingMarkets.com