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View Full Version : ETFs Long and Short, great for IRA accounts.


FibMaster
01-16-2008, 03:46 PM
Many IRA account will not allow you to trade short. So what do you do in a down-market? Fortunately there are funds that trade the inverse of the markets. So you can buy those ETFs which in effect has you short the market, by taking a long position of the bear fund.

Long ETF index funds;

Nasdaq, QLD
Dow 30, DDM,
S&P 500, SSO
Russell, UWM

Short ETF index Funds;

Nasdaq, QID
Dow 30, DXD,
S&P 500, SDS
Russell, TWM
S&P 500, BEARX

Here are some funds which represent market sectors. Some of these are low volume.

Long sector funds;
Basic Materials. UYM
Consumer Goods. UGE
Consumer Services. UCC
Financials. UYG
Health Care. RXL
Industrials. UXI
Oil Services. DIG
Real Estate. URE
Semiconductors. USD
Technology. ROM
Utilities. UPPW

Short sector funds;
Basic Materials. SMN
Consumer Goods. SZK
Consumer Services. SCC
Financials. SKF
Health Care. RXD
Industrials. SIJ
Oil Services. DUG
Real Estate. SRS
Semiconductors. SSG
Technology. REW
Utilities. SDP

lori
01-24-2008, 04:37 PM
thanx so much for posting these..appreciate all u do! what kind of volume should i be looking for to trade etf's or funds? lori

FibMaster
01-24-2008, 10:36 PM
Stock volume and fund volumes are not the same. For stocks, we need a high volume for liquidity, and also to ensure that Fibonacci techniques will be applicable. Liquidity helps us because we can get in and out of the market without painful slippage, and those high-risk gaps are limited by liquidity too.

Funds are different because they represent a collection of stocks, and the stocks they collect usually have significant volume. Also, there is often just one trade price per day, so there is not much trading opportunity intraday.

If a fund trades intraday, such as SPY, DIA, QQQ, then you want volume for liquidity. Luckily those have sufficient liquidity. Many funds do not trade intraday.

Here is a great article about funds/etfs and volume;

http://seekingalpha.com/article/36993-the-impact-of-trading-volume-on-etf-price