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ETF Investing

ETF & Stock Recommendations

 

Current ETF & Stock Recommendations:

ETF Market Direction: UP (This is a very volatile market )

Warning: Dangerous Market ... Use Stops

ETF's are one of the best stock market investments available because they are a stock index and no one stock can cause it to fluctuate drastically.   For that reason there is more safety in ETF Stock Investments and this page will save you many hours of stock market research using stock market software because we have done the work for you.  These are our ETF Recommendations based on ETF Charts and Signals.  ETF Recommendations are changed as signals change, mostly weekly, but can change more often based on signals. We have seen a longer up cycle in Bull ETF's, so expecting a longer down cycle for Bear ETF's. Warning: Always use Stop Loss Orders

During the Bear Market starting around November 2007, many investors have made a lot of money with the Bear ETF Funds, including the 2x and 3x Bear ETF's.   The 3x Bear ETF's are for day trades only since they move in either direction very fast. The best advice I can give is to use charts to determine buy and sell signals for etf recommendations.

It is recommended that you pick several of these ETF's listed below and rotate into them or out of them as they are on or off the list.   With a volitile market like this one, you can expect to rotate in and out of ETF's almost on a daily basis, unless a trend occurs.   While you will unlikely buy them at the bottom or sell them at the top, you will consistently be in the ETF's that are leading the market with 4 proprietary indicators that have proven to outperform the market.  Use this list at your own risk and be sure to research each investment before trading.  Place Stops below any order!

 

ETF Recommendation

Smart Dividend Investing is a great method for building a nice portfolio and will help you build a retirement income account.

One way to make money in ETF Trading is to use a Top ETF Trading System in order to take the emotion out of the buy and sell decision and let the Computer Model tell you when to trade. It is important that you find an ETF trading strategy that works for you and stick with it. This type of strategy will give you consistent earnings. Remember that all trades are not always profitable but the goal is to make the majority profitable with a low percentage draw down on the losing trades.

Market Commentary

2/26/2015 TQQQ (3x QQQ) Trending Higher :

TQQQ  NASDAQ 3xYou can create charts like the one above at StockCharts.com

With any stock market investment, always use stop losses to protect your investment. The market is volatile. When the $VIX is moving up, fear is moving up.

Bear ETF's allow us to make money in a down market.  So ETF's allow us to make money in any market.  The small investor now can create their own hedge fund and level the playing field

ETF's recommended below are shown by type of Momentum and Strength

  Note: We will update anytime during the day when there is a market trend change.

The Type below is not a rating but simply a different type of momentum or growth indicator.

We buy Long Positions based on trends, using Bull and Bear ETF's including 3x ETF, also known as ETF 3x , so we are always looking for an uptrend in either Bull or Bear ETF's, since Bear ETF's move up when the market moves down.

Note how SPY in this Esignal Advanced Get daily chart is above the stairsteps , and we are long as long as it is above those stairsteps. We don't let the talking heads at CNBC tell us what to do, we let the charts tell us when to buy and sell:

SPY ETF

Often, when a market is overbought, we will get an ETF sell signal at the top and move to 3x Bear ETF's from Direxion ETF Funds.

On market reversals sometimes a 3x ETF or also known as ETF 3x will grow 3 times the normal index, so if you buy an inverse Bear S&P ETF 3x it will go up 3 times as the S&P goes down.

Make sure you put protective stops on all your positions.

Note how SPY has moved above the blue stairsteps and this is a Buy Signal because Fear/Greed Bars are Green.

 

 

There are times in the market when we go to cash and do not invest in ETF's, this is when market is trying to decide what to do.  We appear right now to be at a change is trend with the market starting to trend down and not able to break thru resistance lines.  Both of these ETF's look good in this market.

We use a screening process looking for ETF's that are oversold and have made a turn thus yielding a buy signal for the ETF.  We also are very interested in the general trend of the overall market so we watch both the Wilshire 5000 and the VIX index for signs of an overall market trend.  We prefer to look at the 5 minute, 60 minute, and daily charts to get confirmation on moves in the market using the Wilshire 500 index and VIX index to tell us which side the market to invest in ETFs.

Basically 5 or 6 Indicators must be positive before we buy an ETF.  ETF's are great because of the lower market risk, however always set stop losses on all your investments because the market, especially this market, can turn on a dime.

When the market is deciding what to do we stay with safer ETFs, such as the Utility ETF providing we also have Buy signals (We want to see multiple indicators indicate a buy signal).  A good way to get leverage is to invest in the Ultra ETFs that move 200% of the index, for example, a Bear Ultra ETF will move up 200% when the index is moving down, and same for a Bull Ultra, it will move up 200%.  ETFs provide nice leverage with less risk than an ordinary stock since you are buying an index.

When we see the market about to turn that is the time to get ready to either make an investment in either a Bear ETF or a Bull ETF.   Do not put more than 10% into any ETF and be sure to use stop losses to guard against a loss.   Move your stops up as the stock moves up, and sell the ETF when it looks like a good time to take your profits.

In determining the Overall Market Direction, we really like to use both the VIX and the Wilshire 500 to determine whether to buy Bear ETF's or Bull ETF's.  ETF Buy signals are confirmed using these indicators.

In a down market, ultra short ETF's can do very well.  Recommend that you chart ETF's using Stockcharts.com.  In the high volitile market, you need to watch your ETF's and set Stops otherwise you can lose big.    We like to wait for a clear direction.   Right now the trend is up but can change any day.   We can expect a bear rally or head fake but market will continue lower in this economy.

 

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