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Description:

Market timing using trending `leveraged ETFs` and ETNs entering when markets are extremely overbought or oversold. Trend criteria are based on technical indicators--moving averages and oscillators. Fundamentals are disregarded. Trend investing is both relatively simple and powerful, working very well with one or two ETFs as the sole holdings of a portfolio. For those who prefer to hold multiple ETFs, one would ideally mix least-correlating sectors to lessen volatility and maximize diversity of portfolio.

>> Short-cut URL to this Stockpickr page: bit.ly/edetf

MARKET VIEW:

April 24, 2013--

Currently, the overbought US markets' transition to a downtrend is in place (with the world to follow soon). During the last month or so, the down weeks have had greater volume than the up weeks, another telling confirmation. The present small rally is a counter-trend (dead cat) bounce. When the bounce is over, TZA will be a prime candidate for me.

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CORE LIST of `leveraged ETFs`, including long/short pairs: These are buy candidates when meeting certain trend criteria--when not overbought, after pullbacks or consolidations. Because most sectors and indices are highly correlated and in great part trend together, in many cases it makes little difference which ones are selected for medium-term trading, as long as leverage level is the same (2x or 3x): BAL (cotton), BHH (Internet), DAG (agriculture), DIG/DUG (oil& gas), UGLD/DGLD (gold), DRN (real estate), EDC (emerging markets), EFO/EFU (EAFE world markets), ERX (energy), FAS/FAZ (financials), LBJ (Latin America), PALL (palladium), RETL (retail), TECL (technology), TNA/TZA (small caps), TQQQ/SQQQ (NASDAQ), TYH (technology), UCC (consumer services), UCD (commodities), UWTI/DWTI (crude oil), UGE (consumer goods), ULE (Euro), USLV/DSLV (silver), UYM (basic materials), YCL/YCS (Yen), YINN/YANG (China).

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FAVORITE ANALYSTS:

Trend timer analysts I find most interesting and mostly accurate whom I follow (I agree with them much of the time) and their views of the market direction--also some *signal generator* sites:

>> Steve Bigelow (Candlestick Trading Forum, Google search term: daily stock market comments Bigelow)
>> Thomas Bulkowski (Google search term: Pattern Site)
>> Robert W. Colby (robertwcolby.com or Google search term: Robert Colby)
>> CXO Advisory (cxoadvisory.com or Google search term: CXO advisory)
>> Karl Eggers (KarlEggers.com or Google search term: Through a Trader's Eyes)
>> Carl Futia (Google search term)
>> Adam Hewison (Google search term: INO Traders Blog (select index or sector from Market Reports)
>> Live Charts (Google search term: LiveCharts trends)
>> Market Timing Systems (Google search term: ETF TSP current timing signals)
>> Leslie Masonson (Google search term: Buy Don't Hold Blog Archive)
>> MyTrendTimer.com:
>> Tom O'Brien (radio show: tfnn.com)
>> Presidential Brokerage Market Light (Google search term: Presidential Brokerage)
>> StockTA.com
>> TradingDay.com
>> The Wave Trading (thewavetrading.com or Google search term: thewavetrading)

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DISCLAIMER: investing long term in leveraged ETFs is considered to be very risky. Information here is not always most current. When trying new trading methods and strategies, test them with small amounts of money or do simulated trading with sites such as Stockpickr or Investopedia.com.

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