Well, I’ve been reviewing my watchlist today (and some inverse ETF charts), something I failed to do last week due to time constraints. It’s been a really painful experience. There were so many opportunities to get in when the getting was good.
Several Inverse ETFs, for example, have been giving a long-term buy signal and on Thursday or Friday last week finally gave the short-term confirmation buy signal. Had I been properly monitoring my list, as I’m supposed to, this wouldn’t have been a problem. The long-term charts indicated a turn to a bearish market (or the change from a bullish one) a couple of weeks ago (by the charts) so I should have started to monitor some ETFs for potential trades. I’ll add this to my trading plan. The mention of ETFs in the plan was too vague to be useful. Inverse ETFs, I believe give a good opportunity to short the indices and/or sectors and can possibly be a good trading vehicle. That being said, the trading plan will be updated to include a standing watch list of both long and short ETFs. The question remains, should I use leveraged ETFs over straight ETFs? (It’s late now… but I’ll post some sample charts of the ‘missed opportunities’ in the morning.
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I am an amateur trader and investor with over 15 years experience in the stock market. I was bred to be a fundamentalist and followed fundamental analysis until 2009. Following the 2007-2008 bear market, I began to shift from a buy-and-hold strategy to trend-following techniques.