High Probability Trading Report: Exiting into Strength in IWM, XRT, OIH
From exchange-traded funds representing small cap stocks to ETFs for retail and oil service corporations, our High Probability ETF Trading Software continues to pump out the exit signals in a number of ETFs that have rallied into strength over the past session.
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Volatility has quieted down significantly over the past few days, a predictable development given the wild swings traders have had to deal with. As such, there are fewer high probability set-ups for traders here at mid-week. We’ll take a look at what potential opportunities currently exist, as well as review some of the better performers – especially in exchange-traded funds – over the past few days.
Stocks:
I wrote Thursday after the close in a column that was published Friday morning that the sharp sudden decline in the market likely provided an opportunity for high probability traders for whom pullbacks had become few and far between. The breadth of opportunity created by the panic selling of late last week was significant enough to include a number of blue chip stocks among the most oversold. This includes stocks like ^AXP^, which rallied by well over 6% after plunging into oversold territory on Friday and gain of more than 5% in ^DD^.
I’ve mentioned the importance of trading using intraday weakness when it comes to high probability trading strategies and stocks. If you haven’t read our primer on intraday weakness, then stop, do not pass go, go directly to this link and read: Swing Trading Strategies: Pullbacks and Intraday Weakness.
Exchange-Traded Funds (ETFs):
Many ETFs rallied to exit levels on Monday, as I noted in yesterday’s High Probability Trading Report (“Locking in Gains in Metals, REITs and Country Funds”). As of Tuesday’s close, an additional number of ETFs, from the ^IWM^ to the ^XRT^ earned exit signals in high probability ETF trading strategies like TPS (Time Price Scale-In) and R3.
Looking out over the next few days, there will be a likely few ETFs that have still not yet rallied sufficiently for traders who bought them on pullback to take profits. Among the ETFs in this cohort are funds like the ^XLK^, the ^DIA^ and the ^VTI^. All three of these funds have earned at least three trading signals from our High Probability ETF Trading Software over the past few days.
With Larry Connors’ High Probability ETF Trading Software, short term traders have access to the same kind of “buy the selling, sell the buying” trading strategies that professional traders have used successfully for decades.
Click here to start your free trial to Larry Connors’ High Probability ETF Trading Software today!
David Penn is Editor in Chief at TradingMarkets.com.