First few days of trading in August have been bad for the US equities. Whether it is the summer vacation or the heat but the major market indices decline during this time period. The bearish tendencies are strong enough to trade.
We have applied our proprietary strategy for entry and exit to identify favorable time to take advantage of this phenomenon. Since 2000, using 1X and 2X index ETFs, our strategy produced 55 trades and 71% of them were winners. The average gain is 1.6% for six-day holding period giving an annualized return of 102%.
| Seq. | ETF | # of Trades | Win % | Avg. Return | Avg. Days | Annualized |
| 1 | DIA/DXD | 14 | 71% | 1.1% | 6 | 71% |
| 2 | SPY/SDS | 14 | 64% | 1.1% | 6 | 70% |
| 3 | QQQ/QID | 14 | 79% | 1.9% | 6 | 122% |
| 4 | IWM/TWM | 14 | 69% | 2.2% | 6 | 143% |
Our this ‘Almanac Trader’ strategy calls for going long on market close on July 30th for:
- ProShares UltraShort Dow 30 (DXD)
- ProShares UltraShort S&P 500 (SDS)
- ProShares UltraShort QQQ (QID)
- ProShares UltraShort Russell 2000 (TWM)
We will issue trade alert for exit.
