Swing Trading: Why Traders Need Different Strategies for Different Markets
What does it mean to build a swing trading portfolio that can perform well whether markets are moving up, moving down or moving sideways?
For swing traders to trade this way, their portfolios need to include a diverse set of strategies – and not just diverse stock strategies, but diverse ETF trading strategies, as well.
Exchange-traded funds allow swing traders to take full advantage of the different types of market conditions that appear during any given year. Most recently, weakness in stocks has proven an excellent opportunity for swing traders with leveraged ETF trading strategies in their portfolios to make gains – particularly inverse leveraged ETF trading strategies.
For just an idea of the sort of week inverse leveraged ETF trading strategies had, take a look at our Big Weekly Winners: Swing Trading with PowerRatings column from this morning.
Big Weekly Winners: Swing Trading with PowerRatings
And for more on building trading portfolios that can outperform in up markets, down markets and even markets that are moving side to side, visit us at the link below to learn more about our upcoming, free trading webinar: How to Engineer Your Trading Portfolio for Profits – presented by Larry Connors, founder and CEO of TradingMarkets.com.
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Here are 7 Stocks You Need to Know for Tuesday
Banks and retail bore the brunt of the selling on the first trading day of the week. The stock market is poised to open in oversold territory when trading begins Tuesday morning.
Scheduled to report quarterly earnings on Tuesday is ^BAC^. Shares of BAC have been trading below their 200-day moving average since mid-April, and have closed lower for seven straight trading days.
Also reporting earnings on Tuesday is ^KO^. KO is now oversold above the 200-day moving average after pulling back for a third day in a row. Shares of KO finished at their lowest closing level in the past two trading weeks.
Among the retailers pulling back on Monday that remain above their 200-day moving averages are discounters like ^DLTR^, which has closed lower for seven days in a row and is oversold, and ^M^. Shares of Macy’s have pulled back for two days in a row, but are not yet in oversold territory.
Remember you can still get the first edition of Larry Connors’ trading book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs FOR FREE. Click here for more information.
Despite pulling back by nearly 1% on Monday, shares of ^JWN^ remain rangebound after rallying to new highs in the first half of the month.
What’s up on a down day? How about ^AAPL^?
Shares of Apple gained more than 2% in Monday’s session, closing at their highest levels of the year.
Shares of ^ALTR^ remained little changed ahead of the company’s scheduled earnings announcement on Tuesday. ALTR had pulled back for five out of the previous six trading days, the last four in oversold territory above the 200-day.
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David Penn is Editor in Chief of TradingMarkets.com