All posts by admin

ProShares Leveraged ETFs – Sectors Long and Short

ETFS, group and sector, portfolio management, Uncategorized


There are many ETF families in the market today, and of course, the oldest and most popular ETF, SPY has been around since 1993. Ultra ProShares Exchange Traded Funds (ETFs) developed by Profunds and traded on the AMEX. are one of the most actively traded areas of the markets. With $billions pouring into the UltraShort QQQ ETF, QID, it’s evident that it’s become one of the most actively traded ETFs globally.

Whether you’re a trader or investor, these Ultra ETFs serve as valuable tools capable of enhancing returns while mitigating risks.

Ultra bullish and UltraShort ETFs on broad market indices expanded some years ago to include leveraged bullish and bearish Sector and International ETFs. These additions enable investors to hedge or amplify sector exposure effortlessly. Moreover, these Ultra and UltraShort ETFs are compatible with IRAs or retirement accounts, where shorting or margin trading is typically restricted.

From a trader’s perspective, the liquidity and leverage of Ultra Bullish and UltraShort ETFs, which move two times the underlying index or inversely track it, offer a simpler and less risky alternative to options, futures, or shorting stocks.

For day traders, the highly liquid QQQ ETFs, QLD and QID, along with S&P500 ETFs, SDS and SSO, have become favored vehicles. The volatility of these ETFs presents opportunities for swift gains.

For investors and portfolio managers, ProShares ETFs offer a plethora of risk management tactics and asset allocation strategies. They provide flexibility to hedge against market risk or capitalize on market fluctuations. Furthermore, leveraging Ultra ETFs in asset allocation frees up capital for further diversification, allowing for strategic positioning across various sectors and markets. Sectors, in particular, have gained importance in recent times, with ProShares Sector ETFs offering exposure to Dow Jones Sectors.

For further leveraging the leverage, listed options on Ultra ETFs bring new possibilities for creative strategies. Covered call writes on bearish ETFs or options on Ultra ETFs provide avenues for managing risk and capitalizing on market movements with added leverage.

Given these ‘options on steroids’ move so quickly, only spend as much as you can afford to lose keeping in mind the thought “Have a hunch – buy a bunch. Hunch is wrong – bunch is gone”. While using Puts or Calls on Ultra Short and Ultra ETF’s requires some upside down and out-of-the-box thinking they add are few arrows to the trader’s quiver.

In conclusion, the Ultra ProShares ETFs have revolutionized trading and investing, offering opportunities previously inaccessible to individual investors.

There’s an AIQ list of the Proshares Sector ETFs available for download at https://aiqeducation.com/PROSECT.lis

This list file needs to be in your /wintes32 folder

Mastering Support and Resistance – recording of AIQ Zoom meet April 17, 2024

Uncategorized

In this session, Steve Hill also highlighted pitfalls to be aware of in gauging these levels and included recent Chart analysis of the Dow 30 stocks

Support and resistance levels are crucial for identifying key price levels where supply and demand imbalance occurs. Traders use these levels to set entry and exit points, manage risk, and determine the overall market sentiment. Understanding support and resistance levels can enhance trading strategies and improve trading performance.

In volatile market conditions, support and resistance levels may be breached momentarily, leading to false signals. Prices can quickly reverse direction, causing traders to incur losses if they enter positions based on the temporary breach.

In markets with low liquidity or during after-hours trading sessions, support and resistance levels may not hold as strongly as they would during regular trading hours. Price movements in such markets can be erratic, leading to false signals.

Significant news announcements or economic data releases can cause sudden and sharp price movements that breach support and resistance levels. Traders may interpret these movements as false signals, especially if the price quickly reverses after the initial reaction.

Sometimes, the price may temporarily breach a support or resistance level as part of a price discovery process. This could be a stocks attempt to test the strength of the level before resuming its previous trend. If the breach is not sustained, it may be considered a fake move.

#stocktrading #stocktrader #technicalanalysis

AIQ Market Timing Signal 4-2-24 0-100 down

Uncategorized

The AI Market Timing model in TradingExpert Pro is an invaluable source for predicting direction changes in the stock market.

This Chart of our Dow30 with the New York Stock Exchange merged into the indicators shows our most recent Up signal of 99 -1 from 3-19-2024. Prices moved up from that point until the end of the month.

On 4-2-24 our AI model issued a 0-100 Down, below some of the major technical events that contributed to this signal.

Trend Status has changed to a strong downtrend. This indicates that a downward trend has started that may continue in this direction. This is a moderate bearish signal.

The 21-day stochastic has declined below the 80% line and the price phase indicator is decreasing. In this strongly down-trending market, this is an indication that the downtrend will continue.

The volume accumulation percentage is decreasing and the 21-day stochastic has moved below the 80% line. In this strongly down market, this is taken as a very strong bearish signal that could be followed by a downward price movement.

The advance/decline oscillator has turned negative with volume accumulation already negative. This is a bearish continuation signal in this strongly down-trending market that is often followed by a continued decline in prices.

This transition from up market to down market can be seen just before this down signal by looking at the TradingExpert Pro market Log

The first log generated on 4–1-24 gives us in-depth internal information on the Dow and the NYSE. The indicators show a bullish bias is in place. The WAl and US numbers give us an internal look at the AI assessment of stocks and show a preponderance of signals to the downside. This is often an early sign of a pivot in the market.

The next day 4-2-24 with 0-100 down signal, the Market Log clearly shows a transition to more bearish levels in the indicators. The down signal is borne out by the follow-through to the downside. The Dow has returned to levels from 2 months ago.

FREE  AIQ Zoom meet April 17, 2024  5 – 6pm Eastern

Uncategorized

Mastering Support and Resistance Levels in Trading

Support and resistance levels are well-known concepts in technical analysis that help traders identify key price levels for making informed trading decisions. In this session, Steve Hill, CEO of AIQ Systems will guide you through the key characteristics of support and resistance; not every peak and trough qualifies.

Utilizing Relative Strength for ETF Sector Rotation

Uncategorized, , , ,


AIQ’s pre-built Relative Strength report offers a valuable tool for those seeking to capitalize on sector rotation. By shifting the focus to ETFS and cloning the report as closely as possible in the AIQ Expert Design Studio, we gain the ability to apply additional screening criteria. This adds a layer of flexibility, that can achieve significant market outperformance. . Through AIQ’s Expert Design Studio (EDS) program, users gain the freedom to create their personalized screening techniques.

The approach we aim for is to utilize an EDS model that seeks out high relative strength. To refresh your memory, the short-term Relative Strength report considers the last 120 trading days, divides this period into quarters, and then calculates the average percent change for each quarter with a heavier weight on the most recent quarter. Here’s the EDS code:

RelativeStrength is 0.4Period1+ 0.2Period2 + 0.2Period3 +0.2Period4.
Description is Description().

RSvalue5daysback is valresult(RelativeStrength,5).
Perchangeweekago is ((RelativeStrength – RSvalue5daysback)/RSvalue5daysback)*100.
! change is Perchangeweekago.
good if 1.

Using this code, an EDS report can be generated to rank ETF sectors from strongest to weakest. While investing in high relative strength sectors can be effective, some individuals might feel uneasy about buying when prices are already high. Often, they regret not entering the market earlier upon seeing a high RS sector.

For those preferring to enter a trend earlier, we can integrate a new screening into our EDS report. We’ve discovered that monitoring the weekly change in RS ranking is valuable for determining whether a sector is gaining or losing momentum.

Relative Strength serves as the primary screening metric, where the objective is to hold positions that appear at the top of the report. Instead of purchasing assets immediately when they top the report, some traders may opt to utilize the Change column to identify sectors with the strongest upward momentum. By selecting sectors with the highest Change numbers, you are essentially investing in sectors exhibiting robust momentum in relative strength.

Traders can easily sort sectors by the Change column by clicking on its title. The benefit of entering sectors with a high Change score is the potential for earlier trend entry. However, the drawback is the possibility of false signals—instances where a trend fails to materialize, causing the sector to stagnate in the relative strength ranking.

Investing in high relative strength sectors or sectors with improving relative strength figures presents a solid strategy for entering industry sectors. These approaches can be combined to create a more dynamic strategy. With the combination strategy, the goal is to identify sectors with both high Relative Strength readings and positive Change readings, indicating strength and ongoing improvement.

In this Chart, we see the top % change ETF from 2/23/24. The recent trend is up and it’s accelerated in the last week.

By employing the combination strategy, the focus typically narrows down to selections at or near the top of the Relative Strength column with positive Change readings. This dual approach ensures a focus on strong sectors and becoming even stronger, optimizing the potential for successful investments.

The EDS file mentioned in this article is available at https://aiqeducation.com/RStradingforETFs.EDS

Download and save this file to your /wintes32/ EDS Strategies folder.

The Sector ETF list is available at https://aiqeducation.com/ETF-SECT.lis

Download and save this file to your /wintes32/ folder.