Trading ETFs, Second Edition – Gaining an Edge with Technical Analysis

DERON WAGNER is the founder and head portfolio manager of Morpheus Capital LP, a long/short equity hedge fund, as well as Morpheus Trading Group, a trader education firm specializing in exchange-traded funds and stocks. Recently, Wagner launched his Hong Kong-based company, DragonCharts, which helps foster the development of traders through education with live online stock analysis webinars, and includes a proprietary stock scanning platform. Wagner is the author of the first edition of this book and coauthor of The Long-Term Day Trader and The After-Hours Trader . He also appears in the popular DVD Sector Trading Strategies and is a frequent guest speaker at various financial seminars around the world. He has appeared on CNBC and ABC. Wagner teaches his ETF investment and trading methodology through his Wagner Daily and Wagner Weekly newsletters.

Foreword ix Acknowledgments xi PART I: ETF OVERVIEW AND SELECTION CHAPTER 1 Why Use Technical Analysis with ETFs? 3 CHAPTER 2 Major Types and Families of ETFs 11 PART II: ETF SELECTION THROUGH TECHNICAL ANALYSIS CHAPTER 3 The Top-Down Strategy 31 CHAPTER 4 Finding Indexes with the Most Relative Strength 39 CHAPTER 5 Selecting the Best ETFs 55 CHAPTER 6 Supplementing the Basics 69 PART III: TIMING YOUR ENTRIES AND EXITS CHAPTER 7 Strategies for Entry 87 CHAPTER 8 Strategies for Exit 99 CHAPTER 9 Ten ETFs Bought Long 113 CHAPTER 10 Ten ETFs Sold Short 139 PART IV: FINE-TUNING YOUR STRATEGY CHAPTER 11 Tailoring Your Approach 165 CHAPTER 12 Additional Pointers 177 Afterword 191 Suggested Reading 193 About the Author 195 Index 197