Yesterday we discussed the fact that many successful professional traders and hedge fund managers scale into positions. Today in the second part of this four part series we'll look at the various scaling methods. Scaling-in with Two Pieces Scaling in with two pieces means you'll buy h ... Read more
A few years back I got into a conversation with one of our clients who had just wrapped up a successful career in corporate law and was using his knowledge to start his own hedge fund. Starting a hedge fund is not easy. Beyond the fact that you need to have strategies that constantly create alp ... Read more
This morning I was planning on discussing the recent stock market behavior and looking at what the market has done as compared to other early stage bull markets. I'm going to wait a day though because I just read this nonsense that's making its way throughout Yahoo Finance and the internet...(I'll ... Read more
Today (Wednesday October 14) the market is going to open significantly higher and create an extremely overbought short-term condition. Whether this overbought conditions run for a few hours or a few days it's going to eventually pullback and provide some excellent short-term buying opportunities a ... Read more
Recently there has been a good deal of discussion based upon how just simply using a moving average has outperformed buy and hold in the S&P. This was published recently by a newsletter writer in a book and then Fidelity did their own twist to the test adding a second moving average and findin ... Read more
We have found a handful of quantified strategies to trade leveraged exchange-traded funds, especially one particular strategy which has been correct over 92% of the time including using inverse leveraged ETFs. Each day in my Daily Battle Plan I look to identify the best non-leveraged ETF se ... Read more
This weekend I got a chance to read a wonderful new book Finding Alpha: The Search for Alpha When Risk and Return Break Down (Wiley Finance) by Eric Falkenstein The book looks at ways that alpha can be found and possibly more importantly the many ways that professionals fool themselves into ... Read more
As you may know, the primary strategy we use to trade ETFs is TPS. TPS stands for Time, Price and Scale-in and is the best performing strategy we’ve created (you can find an introduction to TPS is our new book High Probability ETF Trading .) One of the questions I’m often asked is &q ... Read more
Now that so many ETFs have come to the market you need to have the ability to identify which ones to focus on versus which ones to ignore. One of the many factors that go into this decision is the volume and liquidity of an ETF. Here are the rules I like to use. 1. The past month's (the past ... Read more
Last week we looked at how Leveraged and Inverse ETFs behave. If you missed this, you can find it on my research website www.ConnorsResearch.com Another piece of understanding how ETFs trade and what they mean to you is looking at the correlation of ETFs. If you are long multiple energy ETF ... Read more
Mr. Connors is Managing Director of Connors Research LLC, a private research firm that specializes in quantitative analysis for trading. He has over 27 years experience working in the financial markets industry. He started his career in 1982 at Merrill Lynch and later moved on to become a Vice President with Donaldson, Lufkin, Jenrette. In 1994 he founded what is now The Connors Group, a financial markets information company, and in 2004 he founded Connors Research LLC.
Mr. Connors has authored a number of top-selling books on market strategies and volatility trading, including How Markets Really Work, and Street Smarts (with Linda Raschke). Street Smarts was selected by Technical Analysis of Stocks and Commodities magazine as one of "the classics" for trading books written in the past century. His books have been translated into German, Italian, Russian, and Japanese. Connors’ latest book, Short Term Trading Strategies That Work, was released in November 2008.
Mr. Connors' opinions and insights have been featured or quoted in most major financial media sources including The Wall Street Journal, New York Times, Barron's, Bloomberg TV & Radio, Dow Jones Newswire, Yahoo! Finance, E-Trade Financial Daily, Futures Magazine, Technical Analysis of Stocks and Commodities, and others. His research was featured in Bloomberg Magazine in 2008 and he has been a speaker at a number of major investment conferences over the past decade.