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Easy ETF System (Updated Often)

 

ETF's are one of the best stock market investments 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.

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.   Do your rotation either weekly or every 2 weeks.   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.

Market Commentary

With any stock market investment, always use stop losses to protect your investment.

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

Note:  The best ETF's have a Score between 80 and 100.  Be sure to diversify.

11/17  The VIX Index shows us  Fear continues to increase, so no buy signal yet.

11/20  VIX Fear Index increasing about to hit new record... dangerous market.

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

  

 Long Positions (Updated Periodically Last Update: 11/20/08)

ETF SCORE
CASH IN CASH

 

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 down.   We can expect a bear rally or head fake but market will continue lower in this economy.

 

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