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ETF Center

New!   For an overview of the ETF Center, click here for ETF Center tutorial.

Trading ETFs
A three prong approach should be used to successfully trade Exchange Traded Funds (ETFs).

The Market Edge ETF Center is designed to give subscribers a comprehensive, easy to use strategy for investing in ETFs in any kind of market. The service utilizes a three step top-down approach. The three steps include the following:

Step 1 – Determine the Overall Market Direction

Since the stock market does not go up all the time, the first step in any successful investment strategy is projecting the future direction of the overall market. To accomplish this task, the ETF Center uses two Market Edge products, the Market Letter and On The Edge.

The Market Letter is a weekly analysis of the market which includes an intermediate-term bullish or bearish market forecast. Coupled with this is On The Edge, which is an in-depth monthly report which analyses the status of the Market Edge market timing models used to project an intermediate-term market forecast. This forecast should give you a level of confidence as to whether you should be buying or shorting ETFs.

Step 2 – Determine the Right Category of ETF

Just like industry groups, certain categories of ETFs have a greater potential to move higher or lower at any given time. To help with this analysis, the ETF Center uses its Category Analyzer.

Similar to sector analysis, each ETF is assigned to a specific category. The Category Analyzer uses advanced computer modeling techniques to determine which category of ETFs are Strong, Weak, Improving, or Deteriorating. Based upon this analysis, you will know which areas of the market are more likely to outperform over the intermediate-term. When the market forecast is positive, you should choose categories which are rated as Strong or Improving. Conversely, when the market forecast is negative, choose categories which are Weak or Deteriorating.

Step 3 – Determine the Right ETF

Once you have determined the projected market direction and the corresponding ETF categories it is time to pick which ETF to buy or short. This is accomplished by using Market Edge’s Second Opinion module.

Second Opinion uses proprietary computer generated technical inputs to create Long (Buy), Neutral, or Avoid opinions for each ETF on a daily basis. Each Second Opinion report includes the opinion, a daily recommendation for each ETF, simple to understand comments about the technical condition of the ETF and over twenty technical indicators and studies with Buy and Sell stops. This simple, easy to use report contains everything you need to make consistent Buy and Sell decisions which are necessary to a successful investment approach.

For more information on ETFs, click here to see what Dr. Market Edge says about ETFs.

Before investing in an ETF, be sure to carefully consider the ETF's investing objectives, risks, charges and expenses. For a prospectus containing this and other important information, contact the ETF sponsor. The contact information of the ETF sponsor is available on the Company Profile page of each ETF.

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Past performance is not a guarantee of future results. The data contained in Market Edge is obtained from sources considered by Computrade Systems, Inc. to be reliable but the accuracy and completeness thereof are not guaranteed. Computrade Systems, Inc. does not and will not warrant the performance and results that may be obtained while using the Market Edge research service.
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