Does anybody have suggestions for Mirror stocks or ETFs?

BobS

For a while I was exploring the use of Bull/Bear fund pairs, like TNA/TZA to keep my money active. However, while these ETFs yield great rewards, they bring high risks as well. I realize that I would have less risk (as well as reward) if I am using 1X funds rather than 3X funds. But I am wondering whether any of you have found some ETFs which have a fairly close inverse relationship with each other. One such pair which I have not explored fully yet would be OIL and the "airlines" ETF.

Any you would suggest?

Kevo

Most of the ETFs have an inverse. I would say more than half of them have an inverse. There are ETFs for International, every asset class, index, sector, Industry group, and niche group. You could pick anything. I think the niche group and industry group ETFs may not have an inverse. For example, Cloud computing and cyber security may not have inverses. JETS track the airlines industry group, but it may not have an inverse.

All of the InterMarket and International related ETFs have inverses. If you are good at those, then it's a great area to explore.

ray1223

For a list of ETF's database
http://etfdb.com/types/

I use screener in the tools section
http://etfdb.com/tools/

/ray

Quill

Bob S,

http://www.direxioninvestments.com/#
http://www.proshares.com/funds/geared/?gclid=CO2P7b_BkNMCFcaPswodbFYNAA

input the whole list into a watch list, one for Direxion and the other for Proshares, then run the below scans. Using QLD / QID as an example.

The first trick is to use the 20 ema and buy or sell per the crossovers.

http://tinyurl.com/n4c65wt down

http://tinyurl.com/mal3a49 up since on or about January 3rd, 2017

Scan 60 - 20 ema price crossover Up

[type = stock] AND [COUNTRY = US]
//and [SCTR > 90]
AND [Daily Volume > 500000]
AND [Daily Close > 10]
and[Yesterdays close <= Yesterdays EMA(20)]
and [Todays close > Todays EMA(20)]

- - - - - - - - - - - - -

Scan 61 - 20 ema price crossover Down

[type = stock] AND [COUNTRY = US]
//and [SCTR > 90]
AND [Daily Volume > 500000]
AND [Daily Close > 10]
and[Yesterdays close >= Yesterdays EMA(20)]
and [Todays close < Todays EMA(20)]

- - - - - - - - - - - - - -

or the second trick to is to use the 13/50 ema's and buy and sell per the Xovers.

Bullish 13/50 crossover

[type = stock] and [country = US]
//and [SCTR > 90]
and [today's ema(13,close) > today's ema(50,close) ]
and [yesterday's ema(13,close) <= yesterday's ema(50,close)]
and [close > 10]

- - - - - - - - - - - - --

Bearish 13/50 crossover

[type = stock] and [country = US]
//and [SCTR > 90]
and [today's ema(13,close) < today's ema(50,close)]
and [yesterday's ema(13,close) >= yesterday's ema(50,close)]
and [close > 10]

- - - - - - - - - - - - --

The above method uses the Tetter Totter Principle. Does not matter what the market conditions are.

http://stockcharts.com/h-sc/ui?s=QID&p=D&yr=0&mn=6&dy=0&id=p17548029655
http://stockcharts.com/h-sc/ui?s=QLD&p=D&yr=0&mn=6&dy=0&id=p24511014659

The third trick is to use the True Strength Index

If you access to Freestockcharts.com, you can use the True Index 4 7.
Add the Zero line as white dotted.

Scan 22A - Daily True Strenght Index 4 7 over 0 North

[type = stock] AND [COUNTRY = US]
//and [SCTR > 90]
and [TSI (4,7) crosses 0]
AND [Daily Volume > 500000]
AND [Daily Close > 10]

- - - - - - - - - - - - - - - -

Scan 22AA - Daily True Strenght Index 4 7 over 0 South

[type = stock] AND [COUNTRY = US]
//and [SCTR > 90]
and [0 crosses TSI (4,7)]
AND [Daily Volume > 500000]
AND [Daily Close > 10]

Quill -

BobS

Thanks a lot @Quill.
1. I had not used Freestockcharts.com before nor seen the TSI before. I loaded Freestockcharts.com, changed the parameters for TSI to 4 7 and added the zero line as you suggested. Looks interesting.
2. I have used the 20 day crossover and a 13-34 ema crossover before. But your suggestion of 13-50 ema crossover has even fewer false signals. I like that and will likely use it.
3. Have you found any problems in holding QLD (or QID) for a few weeks or months presents any problems, as long as you stay within the ema 13-50 crossover parameters?

Quill

Bob S,

I have no problems with QLD as you may have seen. The 13/50 is for long term traders and the 20 ema and TSI are for short term players to be in and out while compounding the returns along the journey.

http://stockcharts.com/h-sc/ui?s=QLD&p=D&yr=0&mn=6&dy=0&id=p74204205736 same as the 20 ema which the dotted center line is.

I use the price labels to trade using the Simon Sez technique. Had a buy signal today.

The following should help you in trading the 13/50
http://boards.fool.com/tetter-totter-principle-32198232.aspx

Best regards,

Quill -

BobS

@Quill, thanks again. I read your letter on fool.com re the tetter-totter principle.
Do you personally hold QLD longer term (with 13-50) or trade it short term with 20 ema or TSI?
What did you mean by you "had a buy signal today"?

Quill

Bob S.

Provided 3 options to choose from that investor/traders are comfortable with.

The Tetter Totter is long term (13/50) as described. You are in one of the pairs at all times regardless whatever the market conditions either up or down. It is a win-win.
As a Master Swing Trader, I own and maintain all of the pairs(one or the other within) as listed via the 13/50ema's.

http://tinyurl.com/kfoxf9s review the above QLD model chart again and then get acclimated to the other charts shown. It only takes 300 milliseconds ( a blink of an eye) to make an informed decisions every morning around 9:50am EST on my Stockcharts summary page. However, there will be at times be a few head fakes from tyme to tyme.

Simon Sez is for sidebar action and the fastest and the simplest way to make money the olde fashion way.

Best regards,
Quill -

BobS

From your article, I got the trading signals using price labels.
So, as a Master Swing Trader using the 13/50 method), you generally are holding 9-12 (from the earlier article) ETFs (most of which are leveraged) between crossovers.
Is that right?
And are these cross-overs generally about 4-12 weeks apart?

Thanks again.