The Sentiment Table with QID and QLD

April 19, 2018, 13:51 pm ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

The Sentiment Table, a proprietary indicator of near-term overbought and oversold market conditions provided by stock traders daily, suggested that the market was overbought on Wednesday.

Accordingly, the Sentiment Table Strategy, a strategy that is designed to take advantage of the indicators provided by the Sentiment Table, initiated short positions.

This strategy uses market-based ETFs exclusively.  It does not trade individual stocks.  Instead, this strategy only trades Ultra Short (NYSE: QID) and Ultra Long (NYSE: QLD).

As a result, the strategy is never short, but it does take advantage of downside market moves by buying the short-based ETF.  This makes it something that retirement plans can take advantage of as well.  Because the strategy is never actually short anything, it only buys short, IRAs can use it.

However, IRA accounts must have same day settlement to use this strategy appropriately.  Stock Traders Daily can provide guidance on how to achieve same day settlement in qualified accounts.

The Sentiment Table Strategy provides trading suggestions overnight, that are actionable the next day, so people who might not normally be able to take advantage of proactive risk-controlled strategies because they don’t have the time or the interest in watching the stock market, can do it.

Although this strategy is a proactive risk-controlled strategy, it does not trade all the time.  Thus far, the strategy has only made 7 trades all year and it is up approximately 8%.  It has also spent most of the time in cash, so it has been free from most of the volatility too.

The Sentiment Table Strategy is something that individual investors can use to take advantage of volatile market conditions even if they don’t want to watch the market all the time.  Review the Sentiment Table Strategy, its rules, and learn how to use it as a subscriber to Stock Traders Daily.

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