Below is a list of ETFs showing sustained accumulation over the last 20 and 40 trading days. That is, institutions are putting money to work in these particular ETFs which is revealed by the amount of buy volume. ETF Central displays the amount of accumulation through a proprietary indicator, called the Demand Indicator (or DI20/DI40).
As you can see, the big fellas are clearly betting the market will continue to deteriorate. Do not as they say, do what they do!
The list updated daily (along with other useful ETF lists) can be found on the ETF Tracker page.
List of ETFs showing the greatest demand over the last 20 trading days
1. Direxion Technology Bear 3x ETF (TYP)
2. ProShares Ultra Short MCSI (EFU)
3. ProShares Ultra Short Technology (REW)
4. VIX Short Term Futures (VXX)
5. ProShares UltraShort China (FXP)
6. ProShares UltraShort Silver (ZSL)
7. WisdomTree Ultra Short Emerging Markets (EEV)
8. ProShares Ultra Short Basic Materials (SMN)
9. ProShares Ultra Short Semis (SSG)
10. Direxion Financial 3x Bear ETF (FAZ)
Amending my comment of 11/15/09: here is a, “Less Wordy”, version of my (FREE) method for trading the, “ULTRA ETF’s”. Please try it on paper first, to build up your confidence. To the people at ETF Central, please review this to make sure, everything I say is correct.
My contention is that if this were taught to every high school senior, there wouldn’t be any, “UNEMPLOYMENT”. The following was reviewed and approved by Jeff Benjamin, Sr. Editor of Investment News, a subsidiary of Crain’s Business Magazine, 6/4/09.
Before you start, please review exactly who my family is. Google: John Jenney – Descendants, and YOU TUBE: John Jenney of Plymouth, you will see that my family was on the 4Th ship at Plymouth Rock, (we owned the ship), had the 1st “Grist Mill” in the New World, the 1st Brewery in New England, credited with forming the “FREE ENTERPRISE SYSTEM” in 1623. Google: William Le Baron Jenney, he built the 1st skyscraper, the Home Insurance building in Chicago, tutor to Burnham and Sullivan, the developers of the Chicago Lake Front. In 1066, fought alongside William the Conqueror at the Battle of Hastings.
ULTRA ETF’s
ATTAINING SELF SUFFICIENCY
1.) Pick a liquid Ultra ETF and it’s counter part, (BULL, for when the market is going up, and BEAR for when the market is going down). A “Liquid Ultra ETF”, is one that trades millions of shares per day between the two of them. These may be obtained from the web site PRO SHARES 3X, or http://www.direxionshares.com., put the cursor on ETF.
2.) Put up the Example Chart and make the appropriate settings:
Google: Optionsxpresslogin
Name: Char21
P/W : 214214C
Cursor on: Quotes
Menu: basic charts
Adjust the charts to; TYPE: line, PERIOD: 2 days – 2 months, LOWER STUDY: CCI (COMMODITY CHANNEL INDEX), LOWER STUDY AGAIN: RSI (RELATIVE STRENGTH INDEX), and LOWER STUDY FOR A THIRD TIME: MACD (MOVING AVERAGE CONVERGENCE / DIVERGENCE). A NOVICE SHOULD STICK WITH A 2 MONTH CHART.
3.) With your chart ready to go, get the overall, “TREND”, of the market. Symbol – DIA for the DOW, SPY for the S&P500, QQQQ for the NASDAQ. If the market is trending up it’s called a “BULL”, trending down, it’s called a, “BEAR”. This will determine if you’re going to invest in a Bull or Bear, “ULTRA ETF”.
REMEMBER, DO NOT COMPARE OVERALL MARKET ETF’s ON ONE CHART AND TIME PERIOD, AGAINST THE ULTRA ETF YOU’RE BUYING ON A DIFFERENT CHART AND TIME PERIOD. THE RESULTS WILL BE FLAWED.
4.) When the CCI line crosses (-100) moving up, the RSI line crosses (40) moving up, and the MACD lines are moving up, the (Black line crosses the Red), it’s safe to start buying the ULTRA ETF you’ve been watching.
Each time your, “BUY”, has been confirmed, establish a comfortable stop loss position. A stop loss position is putting in a sell order below your buying price or below the current price for protection. If something bad happens, you’ll be protected by minimizing your loss. As the price of your ULTRA ETF increases, keep moving up the price of the stop, especially if you have a nice profit accumulated. This is referred to as a, “Trailing Stop”.
5.) Hold your position until it has been stopped out, bank your profits and wait for the situation to present itself again. This is normally almost immediately realized by switching over to the corresponding ETF of the one you just exited, (BULL to BEAR, or BEAR to BULL).
SHORT ON DISCRETIONARY INCOME? FORM AN INVESTMENT CLUB WITH FAMILY OR FRIENDS. ALWAYS CONFER WITH A CPA FIRST IF YOU DO SO, CONCERNING ANY TAX RAMIFICATIONS, OR IF YOU ARE BETTER OFF FORMING A LLP OR LLC.
Questions: E-mail, j.mike214@yahoo.com, and put the word Question in the subject box.
What do I get out of this you ask? I don’t ever have to hear the words unemployment or 27,000 children died last night due to starvation and disease.