ETF (Sectors) swing trading

Discussion in 'ETFs' started by richk, Aug 14, 2003.

  1. richk



    are there traders who are swing trading ETFs (sectors primarly with broadbased as additions) ? I am interesting in opening thread for discussion about setups (and journals) of such trades, but before do that I want to know if there will be any interest in such discussion.

    Happy trading,
  2. I am stuck in a swing trade long 2,000 QQQ's from 31.36...been stuck for a week......Probably my worst trade yet.....I had 8 straight profitable Q trades 2 weeks ago then got caught in this mess......
  3. Must be more than a week - Qs haven't see 31.36 since 8/5 - price rode to a new monthly low from there

    What was/is your planned "get out" price?
  4. I'm short XLK and not proud of it. I've just started trading ETFs. I have a list of about a dozen that I look at that have high volume (over 200k).

    The strange thing to me is I'm shying away from equities because I can't stand being hit by earnings announcements, institutional moves, upgrades/downgrades, etc. However, I am finding that indexes get bumped with the macroeconomic numbers and there's macroeconomic data virtually every day, so in some ways it's tougher.
  5. richk


    Shoeshine Boy:

    I see liquidity as no problem for swing trading as price is moving not by trading of ETF but tracked sector index. Based on sector index value (indicative value for ETF) I enter limit orders. I am able to get fill +/- 0.05 from fair price in most cases which is not bad for swing trades.

    I see that the sectors are well tradable by technical analysys and are not so sensitive to earnings of one company, and/or macro data.

    I have now list about 20 ETFs in my watch list, scan them every day and prepare setups. Right today I have 5 setups (4xshort,1x long), no entered today.
  6. Can anyone post a list of liquid ETF's that are swingable?

  7. I felt the spreads were a little too high on some of the smaller ETFs, but I realize a lot of that is personal preference and trading style.

    You're where I want to be. Right now I'm kind of dabbling. I guess what I'm talking about is that I feel a lot of the technical stuff I felt was saying we were due for at least a small correction. But then we've had some more optimistic macro data this last week and now everything got bumped up a little. But I realize one could easily argue that we weren't due for a correction at all.

    So how do you decide how many "threads" to trade, i.e. how many positions to hold at one time?
  8. lescor


  9. richk


    I am not sure what is enough liquidity for you, but ETF for swings are not so sensitive for daily volume. I have in my watch list:
  10. lindq


    Yes, I've also found that to be true, generally. I've revised some of the indicators and levels I use for swing trading stocks into use for ETFs. Many of the same approaches work, but ETFs are more "shallow", less volatile in their price movement. So the opportunities for 2-3 point gains in holding a few days are seldom as strong as with individual stocks. On the other hand, they can also get hit with overnight and economic news. So in terms of overall risk/reward and best use of capital, I still prefer stocks.
    #10     Aug 14, 2003