Stocks

ETF Trading with Larry Connors: How to Sell ETFs Short 101

How many ways were there to sell short the S&P 500 last week, as the market climbed deeper and deeper into overbought territory below the 200-day moving average?

Whether your trade of preference was the SPDR S&P 500 ETF ( SPY ) or, for those in restricted accounts, the SPY's inverse, the ProShares Short S&P 500 ( SH ) , the results on Friday were the same: another profitable trade for short term swing traders trading ETFs with Larry Connors' Daily Battle Plan .

Click here to start your free, 7-day subscription to Larry Connors Daily Battle Plan.

As Larry wrote in a four-part series for TradingMarkets.com earlier this year.

What we want to do, and what you want to do as a trader with your own money, is ultimately to be able to have certain rules in place to help you answer the questions: is a market in an uptrend? Is a market in a downtrend? And how do I appropriately allocate capital during each of those markets?

To read the rest of Larry's four-part series on ETF Trading and the Daily Battle Plan, click here .

This last trade in the S&P 500 was a textbook high probability trade from Larry Connors' Daily Battle Plan . Correct 80% of the time since inception in October 2008 - and with an accuracy rate of 80% in 2011, as well - Larry Connors Daily Battle Plan is a great way for traders way to add a quantified, long and short, ETF trading strategy to their overall swing trading portfolio (and if you are not trading more than one strategy in your portfolio, click here to read "Why a Portfolio of Strategies Beats a Portfolio of Stocks.").

If you are looking to start trading exchange-traded funds, then Larry Connors' Daily Battle Plan is a great place to start. Click the link below to launch your free, 7-day trial to Larry Connors' Daily Battle Plan today.

Larry Connors' Daily Battle Plan: Quantified, Data-Driven ETF Trading for Short Term Traders

David Penn is Editor in Chief of TradingMarkets.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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