Do you remember last week when I tweeted from the FMA conference about the luncheon speaker who pointed out the fact that levered ETFs that regularly relever are good at mirroring the market on a daily basis, but in the long term are bad bets since they are short an embedded option on Gamma which m ... 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 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

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

I thought today would be a good day to discuss some of the additional risks associated with leveraged ETFs. As you know, the goal of my Daily Battle Plan is to identify high probability ETF set-ups and then scale-into those positions. As you have seen, this has happened 15 times this year a ... Read more

1. I'm happy to see some of you took yesterday's 3x 2-period RSI homework and sent it me. The response was very good and many of you had positive comments about walking through the exercise. I encourage you to look at this if you have the time as it gives you an idea of how the 3x ETFs have been t ... Read more

Yesterday we looked at the universe of 3x ETFs available to trade. Today and tomorrow, I'd like you to do some homework. As you know, I have been publishing research on the 2-period RSI since 2004. It touches many of our trading strategies and the research behind it was also published in ... Read more

Yesterday we needed to wait right until 4 pm to know if the Q’s were going to close higher for the day and trigger a short signal. There are days when you literally need to wait until the final minute before knowing if you’ll have an official signal. So what happens if you decide to take ... Read more

This past month was one of the most consistent months for the type of trading we do. In our Daily Plan we had 8 signals, all ETF scale-ins. All 8 trades were profitable trades. Because we scale-into trades, (a topic I’ve covered here over the past 4 days), sometimes we are fully invested in ... Read more