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Sector Rotation & which ETFs to use

burycs
burycs ✭
in Using this StockCharts Answer Network forum


How do I use stock charts to determine what sector (using ETFs) is best to be in; and when to switch into the best ETF of that top sector.

Also, how to determine if an inverse fund is a better choice than going long on a sector?

Comments

  • markd
    markd mod
    You could begin here:

    https://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:sector_rotation_roc

  • lambchops
    lambchops ✭
    markd is correct, but here's how I do it daily, it's simple. You do not have to "decide" which the better choice is because you are going to buy one or the other. It works on any time frame, my preference is the 5 minute, it will easily do 5% plus in a matter of hours.

    I personally choose to trade The Junior Gold Index using JNUG for long & JDST for inverse. To determine which, I chart both of them with Kaufmans Adaptive Moving Average. I can't tell you what they mean, I can just tell how beautifully they work. I use both the default settings AND the longer term 10,5,30 setting AND TRADE ON THE CROSS OVER. I set up the default as blue & the longer term setting as red so that I know if blue is crossing up over red I know I'm in the right direction.

    www.3xetf.com will give you a large choice of etf's.

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