The ETF Selection Process, Part 1
Today there are many overbought ETFs under their 200 day ma. When times like this occur I’m often asked, “which ETFs should I focus on?”
There is a long answer to this short question. But today and tomorrow I’ll give you some guidelines and the why’s to guidelines.
Today we’ll look at the ranking order. The rank order in reverse is:
3. Commodity, Currency, and Bond Funds
2. Sector Funds
1. Country Funds
Country funds are first because they revert to the mean the best of all ETFs. This is backed by strong historical statistical research we’ve done going back to the inception of trading of all publicly traded ETFs. Therefore when the ETF list gets long in a given trading day, you start first with the above guidelines.
Tomorrow, I’ll share our findings with you deeper and how to apply them to your trading.
This is from Larry Connors Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.