Markets sold off hard yesterday but bounced during last hour of trading. I used this hard selloff to cover my shorts in some ETF trades: Short RTH, Short Dow Jones (by inverse Short ETF DOG) and Short SmallCap (Inverse Short ETF RWM).

The support areas I am watching worked very well. The important question is if they will be able to hold markets.

Markets are not in bullish mode right now so I do not expect new bull rally. Preferably I expect some correction upmove. Such move should offer more shorting opportunities in weak stocks and sectors.

I noticed two sectors yesterday during my stock market and sector analysis. Consumer staples and Utilities sectors look bullish for me. Their sector ETF (XLP and XLU) formed nice bullish chart pattern. They are good candidates for ETF swing trading setup to trade during expected market correction move up.

I look into these two sectors for possible swing trade candidates on long side, too

This entry was posted on Friday, November 9th, 2007 at 2:19 pm and is filed under ETF analysis, ETF trade setup, Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.