High Probability ETF Trading: Choosing the Best ETFs to Trade

One of the questions I often get is how I choose ETFs in my Daily Battle Plan when there are too many set-ups in a day.

For example, there are 61 liquid 1x ETFs that qualified as buys last night. Which ones do you choose? One way is a portfolio method that space doesn’t allow for us to look at here. However, some simple guidelines for you to follow though are:

Multiple Country Funds triggering at the same time: Start with the major U.S. indices first before moving abroad.

These are good guidelines backed by statistical results going back to 1993. I covered this selection and portfolio process in greater depth during our 2010 Swing Trading College which began in January 2010. If you’d like to learn more about upcoming courses and any new information we’ve added, you can find out more by clicking here.

This is from Larry Connors Daily Battle Plan which he publishes each morning. [Read the full article]

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Talbots’ wardrobe is not the only thing at corporate headquarters that’s becoming more sophisticated. Management at the women’s wear retailer, which adeptly approached the management team at special-purpose acquisition company BPW last October to discuss a partnership, has adjusted the terms of that agreement to increase the likelihood of approval from BPW shareholders. As I argued in my Jan. 15 piece on Talbots, I believe the merger is a win-win situation. BPW needs a home for its cash before April and TLB needs to de-lever its balance sheet and offer an exit for its 50% shareholder, AEON.

The original terms of the deal attempted to ensure a price of $11.25 to BPW shareholders. The calculation to determine the number of shares issued to BPW is a two-step process. First, the weighted average price of Talbots’ stock over the 15 trading days from Jan. 27 to Feb. 16 2009 was collected. Then the $11.25 offer price to BPW was divided by the volume-weighted average Talbots price. [Read the full article]

Buffett further reduced his stake in big oil, most notably selling 19.7 million shares (or 34% of his stake) of ConocoPhillips (NYSE: COP – News). Buffett has cited his 2008 purchase of ConocoPhillips shares as a mistake — evidently one he continues to repair.

Buffett also sliced his health-care holdings, selling more than half of his remaining shares of United Health and WellPoint. More surprisingly, Buffett reduced his stake in Johnson & Johnson; he added more than 4 million shares to his stake in the company as recently as Q2’09.

The big buysIn a quarter of selling, Buffett added to his stakes in only five stocks, suggesting a high level of conviction in those companies.

Company NameNo. Shares Bought in Q409% Share Increase vs. Q309Total No. [Read the full article]

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