Easy Swing Trading - The ETFs

Exchange Traded Funds (ETF) are yet another way in which you can swing trade - either by trading the funds themselves or, by going into the funds and trading the components after a weekly cross over.

Here are a few of the SPDRs which are probably the best sector funds to watch -

Energy - XLE

You can pick out the cross overs for yourself - you can see - once you get the cross over in most instances it would be a good idea to start picking up some of the underlying stocks.

Here's XLF


This one had a long run after the composite cross over last July.

And finally XHB - the homebuilders


Last November there was that brief flurry of activity that lasted for several months. You can bet I'll be watching this one for the next cross over.

That will do it for now in our easy swing trading series - the point and objective is to get you thinking in different time frames in order to make better profits.

Easy Swing Trading

The best way to select stocks for a swing trade that will last a couple of weeks is to use the weekly charts and watch for cross overs. Here is an example - NTRI


You can see that there were two on this chart - the effect lasted for several weeks each time - and you would have made a couple of dollars on each trade.

Of course you could have a farm - GIFI


With 10 events in 4 years - every couple of months it hits again. Once more some real money is possible.

And still some more examples - these are from the IBD top 10 that I talked about the other day. ARGN


July 05, Feb 06, Sep 07 and continuing. Here's AZZ


How can you not love a stock named "AZZ" - what were they thinking! - Jan 06, Jun 06, March 07. And now BTJ -


Jun 05, March 06, Aug 06 (but that one failed), Oct 06, and Jan 07.

And finally one that Dogwood picked up off a daily cross (which means a short term play), Ruby Tuesday (RT) -


A nice composite (candletrick) Oct/Nov 05, and then a clean cross in Aug 06, and another one in Jan 07.

How do you find these? Put up a weekly chart pattern in just about any package and start filling in stocks that you might want to buy. If you use a price range that will permit you to buy in bulk you will be better off and, when in doubt between several stocks pick the one with the lower ATR(10).

There, almost anyone would have paid $60 for a book containing that information (everyone else would have bought it used on Amazon for $30) - and speaking of AMZN


July 05, Nov 05, a failed one Jun 06, Sep/Oct 06, Feb 07, and Mar 07 it's a gusher!.