Most popular ETFs

Standard & Poor's 500 Index Depository Receipts (SPY:AMEX)
The first and still the biggest ETF, this inexpensive fund (pronounced Spiders) tracks the S & P 500 index, which is widely regarded as the standard for measuring large-capitalization U.S. stock market performance. Some selectivity by Standard & Poor's surrounds an otherwise methodical list of the 500 largest traded firms.

Nasdaq-100 Index Tracking Stock (QQQ:AMEX)
Tracks the Nasdaq-100 index, which includes 100 of the largest companies listed on The Nasdaq Stock Market based on market capitalization. It is widely perceived as a technology benchmark and includes computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies or investment companies.

DIAMONDS Trust (DIA:AMEX)
This popular ETF Tracks the Dow Jones Industrial Average, a benchmark of 30 blue chip stocks selected by The Wall Street Journal. The index is highly subjective and rather antiquated in its formula but serves as a good barometer for very large old-line US companies.

iShares S & P 500 (IVV:AMEX)
Barclays' slightly less expensive version of the SPDR tracks the S&P 500 index, which is widely regarded as the standard for measuring large-capitalization U.S. stock market performance. Some selectivity by Standard & Poor's surrounds an otherwise methodical list of the 500 largest traded firms.

Standard & Poor's MidCap 400 SPDRs (MDY:AMEX)
Tracks the S & P MidCap 400 index, which measures the performance of the mid-size company segment of the U.S. market and complements the S&P 500 seamlessly.

iShares Russell 2000 (IWM:AMEX)
Tracks the Russell 2000 index, a popular benchmark for mid- and small-cap companies. The Russell 2000 Index represents the second tier of U.S. equities, or companies with market values between $20 million and $300 million, which account for approximately 8 to 9 percent of the total market. Russell's methodology leads to relatively high turnover.

iShares MSCI EAFE (EFA:AMEX)
The iShares MSCI EAFE Index Fund tracks the MSCI EAFE Index, the top non-US large capitalization index that includes all major economies (except US) and no emerging markets. A popular way to gain foreign exposure.

Total Stock Market VIPERs (VTI:AMEX)
The Vanguard Group's core portfolio ETF tracks the Wilshire 5000 broad market index, which is one of the broadest index for the U.S. equity market, measuring the performance of the vast majority of all U.S. headquartered public companies. Considered an excellent proxy to the US economy as a whole.

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Exchange Traded Funds

Exchange Traded Funds (ETF's) are becoming more and more popular in the every day market. There are several ETF's available that trade millions of shares per day. The heavy volume translates to high liquidity, qualifying many of them as great Day Trade candidates. Some great examples of ETF's that qualify are QQQQ, DIA, SPY, QID, QLD, IWM, and many more! Of course, knowing when to trade and in which direction is the key to profitability.

We use 4 key rules to help maximize your ETF trading profits:
1) Careful Position Entry: When you initiate a trade based on a signal, the reasoning behind the
trade will be clear. We do not feel the need to have an open position at all times--every trade
will have a purpose and statistical probability of profit.
2) Strictly Limit Risk: Your day trading alerts on ETF's will be wrong sometimes. That is why
every day trade will have a well-defined stop loss that gets you out of the position as soon as
the trade is clearly moving in the wrong direction.
3) Let the winners ride: Scalpers and losing traders like to take profits quickly. We believe in
holding positions for as long as they still have a reasonable chance at even bigger profits. Once
an ETF trade has moved solidly into profitable range, we will often move our stop to our
entry price and hold the trade until it has PROVEN to us that it isn't going to breakout even
more. This will often result in a day trade that exceeds our original profit goals.
4) Scale In/Out: Initiate Trades with 1/4 of your intended position and Add-on in 1/4's as long
as the support holds. The same strategy is used as an trade exit - start selling your position as
it approaches target levels. This gives you an option to let a partial position "ride" while locking
in profits on the balance.

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Trailing Stops Work

Trailing Stop saves the day - captured about 1/2 the Profits from my P/L high. Got busy and missed the breakout higher but today getting in late still pays with exaggerated and strong directional momentum moves higher. I will continue to have a short bias and and use rallies to re-establish positions. Tighter stops on long positions and wider stop on shorts

A strategy I use when covering an open position is to cover by more then a 1:1 (short 1000/sh buy 1500, or long 1000/sh sell 1500 to effectively reverse your position) it could be costly in a sideways market, but lately the intra-day reversals have had great momentum.

US Dollar rallies and Gold $847 down $3.00 after being up $40, well off the highs of the day

Happy Trading

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US Markets imploding

Day trading is the best way to trade these markets. Into cash overnight every night and ready for action every morning. Smaller positions with wider stops intra-day, to take into account the greater volatility. The SMA's cross get on board and ride the move.
With over 20+ years of trading these markets(equity and currency), this is the greatest
combination of negative factors resulting in the collapse of the US financial markets.

I am anticipating a one day, 2000+ pt loss on DOW in a final capitulation of the US capital markets combined with a $100+ dollar spike in GOLD.

ETFs are a great way to take advantage of trading an entire sector without specific stock risk.
XLF, XRT, GLD, SPY, QQQQ, and IWM are some of my favorites.

Happy Trading in these historic times and be careful out there

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Benefits of ETFs

What are the benefits of exchange traded funds trading as stocks?
The unique “exchange traded” structure offers several advantages to ETF investors:
1) buy and sell a basket of stocks at any time during the trading day
2) instantly get exposure to a portfolio of stocks or bonds
3) buy on margin
4) sell short, even on a downtick
5) no sales loads, although brokerage commissions will apply
6) lower fees
7) tax efficiencies



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Exchange Traded Funds

Investors can capitalize on the convenience and flexibility of ETFs to pursue a wide variety of investment strategies.

Core investment- Investors can use ETFs as a core investment for their Portfolio.
The purchase of shares in a single ETF can provide broad market exposure of a
portfolio of stocks or bonds for long-term holding that is easy to establish,
easy to track, inexpensive, and tax efficient.

Portfolio diversification- ETFs cover virtually every segment of the equity markets
and several segments of the U.S. bond market, providing an easy and convenient
way to adjust the investment mix of a core portfolio.

Hedging- Exchange traded funds can be purchased on margin and sold short (even on a
downtick), which has opened up risk management strategies for individual
investors that were once available only to large institutions. For example,
ETFs can be sold short to hedge a core stock portfolio or interest rate
fluctuations. This allows investors to keep their portfolio intact while
protecting it from market losses. In a declining stock market or rising
interest rate environment, profits from a short position can offset some of
the losses in a portfolio. (Investors are required to make arrangements to
borrow securities before selling short.) Listed options, available on some ETF
products, also offer opportunities for additional hedging or to increase
income. Investors should contact their broker regarding initial and
maintenance margin requirements.

Cash management- ETFs have often been used to “equitize” cash, providing a way for
investors to put cash to work in the market or maintain allocation targets
while determining where to invest for the longer term.

Rebalancing- Investors can adjust ETF positions at any time throughout the trading
day, without redemption fees or short-term restrictions. Again, usual
brokerage commissions will apply.

Tax loss strategy- An investor can sell a security that is underperforming and claim
a tax loss but retain exposure to its sector by investing in an ETF. Consult a
tax advisor about a tax loss strategy.


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