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Here’s How to Select the Right ETFs Each Day

  • July 20, 2009
  • Larry Connors

I’ve mentioned this before and it bears repeating again. With so many ETFs now available to trade, you should apply an order of preference when many are signaling at the same time.

In historical back testing of short term reversal behavior, the order of those ETFs likely to reverse is as follows (from least to best)

5. Currency ETFs

4. Commodity ETFs

3. Bond ETFS

2. Equity ETFs

1. Country ETFs

All these classes of ETFs exhibit some type of short term reversion to the mean behavior. But the equity ETFs do better than the bond, commodity and currency ETFs. And the country ETFs do the best of them all.

Take this list and keep it in front of you. It will help guide you when you have many choices to make in a trading day.

With 80% winning ETF trades in the model portfolio from October 2008 – you too can realize this level of success with Larry Connors’ Daily Battle Plan.

Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.