In this stock trading strategy video (click here to see other trading education videos), we do an educational technical review of an actual swing trade in ProShares UltraShort Basic Materials ETF ($SMN), an inversely correlated “short ETF,’ which we bought November 8 and sold on November 15. Upon closing the swing trade, we had scored a solid 9.2% gain on an 8-day swing trade.
In the 3-minute video below, you will learn the specific technical analysis signals that prompted us to buy this “short ETF,” which has recently reversed its primary downtrend. For best quality, play the video below and click on the bottom right corner of the video player window to view in full-screen mode:
As discussed in the video, many traders fail to successfully trade on both sides of the market because, even if they have the right technical chart patterns, they simply buy or sell at the wrong time. Following a proven, objective system to indicate the proper timing for buying or selling ANY stock or ETF in the market is one of the most critical elements that determines whether or not a trade will be profitable.
Although the stock market has sold off sharply in recent weeks, adhering to the signals of our rule-based market timing system has enabled subscribers of The Wagner Daily stock picking service to realize substantial profits from swing trading ETFs and stocks on the short side (combined with buying “short ETFs”).
How have you been managing the market’s recent decline? Praying for a bounce, waiting in cash, or profiting on the short side? We always enjoy hearing from fellow traders, so feel free to drop us a quick comment below.