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Trading ETFs: Gaining an Edge with Technical Analysis, Second Edition

Book Description

A comprehensive catalog of exchange-traded funds and insights into successful trading techniques

This Second Edition of the bestselling Trading ETFs offers an updated version of the definitive guide to this vital part of the capital markets. It contains numerous new examples of the techniques that author Deron Wagner uses in selecting the most timely ETFs to trade and underscores the core insights of his trading discipline "trade what you see, not what you think."

Written for professionals who are using, or should be using, ETFs as an asset class within their portfolios, as well as the individual investor who wants exposure to wider sectors and geographical regions than those available elsewhere.

  • This revised edition of the classic resource focuses on the pros, cons, and potential pitfalls of trading the latest class of ETFs

  • Includes inversely correlated and leveraged ETFs and the dangers, risks, and benefits associated with each new class of ETF

  • Contains a refresher on the initial concept of ETF selection and new case studies on ideal entry and exit points as well as examples of real trades

This thoroughly revised and updated edition offers a "go-to" reference for understanding exchange-traded funds.

Table of Contents

  1. Cover Page
  2. About Press
  3. Title Page
  4. Copyright
  5. Dedication
  6. Contents
  7. Foreword
  8. Acknowledgments
  9. PART I: ETF Overview and Selection
    1. CHAPTER 1: Why Use Technical Analysis with ETFs?
      1. History and Growth of ETFs
      2. Trading ETFs versus Individual Stocks
    2. CHAPTER 2: Major Types and Families of ETFs
      1. Industry Sector ETFs
      2. Fixed-Income ETFs
      3. International ETFs
      4. Commodity ETFs
      5. The Hazards of Contango
      6. A New Generation of Commodity ETNs—The Fight against Contango
      7. Currency ETFs
      8. Inversely Correlated and Leveraged ETFs
      9. Unraveling the Leveraged ETF Mystery
      10. Actively Managed ETFs
      11. Popular ETF Families
      12. Guide to ETF Families
      13. An Introduction to Exchange-Traded Notes
  10. PART II: ETF Selection through Technical Analysis
    1. CHAPTER 3: The Top-Down Strategy
      1. Preferred Time Interval of Trading
      2. The Top-Down Strategy Defined
      3. Determining the Direction of the Broad Market Trend
      4. Uptrend, Downtrend, or Range-Bound? Now What?
    2. CHAPTER 4: Finding Indexes with the Most Relative Strength
      1. What Is Relative Strength?
      2. How Do I Find Sectors with Relative Strength or Weakness?
      3. What to Look for When You Scan
      4. Comparing Sector Indexes
      5. Long-Term Relative Strength or Weakness
    3. CHAPTER 5: Selecting the Best ETFs
      1. Know the Compositions of Various ETFs
      2. Buy the Leaders, Not the Laggards
      3. Analyzing Volume
    4. CHAPTER 6: Supplementing the Basics
      1. Using Multiple Time Frames for Confirmation
      2. Understanding Consolidations
      3. Short Selling the Head-and-Shoulders Chart Pattern
      4. The 200-Day Moving Average Brick Wall
      5. Typical Inverse Sector Relationships
      6. Ten-Day Moving Average in Strong Trends
      7. Fibonacci Retracements
  11. PART III: Timing Your Entries and Exits
    1. CHAPTER 7: Strategies for Entry
      1. Breakouts and Pullbacks
      2. Breakouts to New Highs
      3. Breakouts above Downtrend Lines
      4. Pullbacks
      5. Short-Term Corrections
      6. The Opening-Gap Rules
      7. Breakout or Pullback Entry?
    2. CHAPTER 8: Strategies for Exit
      1. Strategies for Closing Winning Positions
      2. Strategies for Closing Losing Positions
      3. Trailing Stops
    3. CHAPTER 9: Ten ETFs Bought Long
      1. Breakout to a New High
      2. Breakout of a Bullish Consolidation
      3. Continuation of a Long-Term Uptrend
      4. Breakout above an Intermediate-Term Downtrend
      5. Continuation of a Long-Term Uptrend
      6. Resumption of a Long-Term Uptrend
      7. Failed Follow-Through of a Downtrend Reversal
      8. Pullback to an Intermediate-Term Uptrend Line
      9. Failed Follow-Through of a Downtrend Reversal
      10. Follow-Through of a Downtrend Reversal
    4. CHAPTER 10: Ten ETFs Sold Short
      1. Short Setups
      2. Resumption of an Established Downtrend
      3. Head-and-Shoulders Pattern
      4. Resumption of an Established Downtrend
      5. Failed Breakdown below Support
      6. Breakdown below the 200-Day Moving Average
      7. Failed Breakout to a New High and Subsequent Trend Reversal
      8. Failed Breakout to a New High and Subsequent Trend Reversal (Short-Term)
      9. Breakdown below the 50-Day MA
      10. Bounce into Resistance of a 50-Day MA
      11. Break of a Symmetrical Triangle Chart Pattern
  12. PART IV: Fine-Tuning Your Strategy
    1. CHAPTER 11: Tailoring Your Approach
      1. Position Sizing
      2. ECNs
      3. Market or Limit?
      4. Identifying Relative Strength Intraday
      5. Selecting the Sector Indexes with Relative Strength
      6. Putting It All Together: Trade Entry Example
    2. CHAPTER 12: Additional Pointers
      1. Assessing Your Trades
      2. Choppy and Indecisive Markets
      3. Proper Trigger Prices
      4. Trade What You See, Not What You Think
      5. Know When to Be in SOH Mode
      6. Don't Necessarily Avoid High-Priced ETFs
      7. Support and Resistance at the Whole Numbers
      8. Always Use Reward/Risk Ratios
      9. After-Hours Trading Activity
      10. Price Divergence Due to Dividend Distributions
      11. Withstanding Stop Hunts
      12. Closing Thoughts
  13. Afterword
  14. Suggested Reading
  15. About the Author
  16. Index