Here are the fifteen best, most liquid ETF's right now on our bullish ETF watchlist. On Macro-Monday's trading video, we'll show you how we use Chaikin Analytics to weed through thousands of ETF's to arrive at these choices. Commodities (from agricultural to energy related) and the companies that mine, extract and refine them, US Banks, Asian countries, particularly with economies that produce and export tech - like Korea and Taiwan and small and medium sized businesses in the US likely to survive and thrive thanks to government stimulus and Fed funny money are where we are looking to put our money to work.
From the list above, Invesco runs the Very Bullish rated ETF TAN, which consolidates publicly traded companies across the globe specializing in the solar energy space. TAN has been a Chaikin classic bull since the stock market hit its COVID low early last spring, price action for which having gone parabolic after the Democrats secured the White House and the Senate during the past two months. The ETF has recently pulled back to an oversold level (with only a small blip of accompanying negative money flow and continued positive relative strength). We can make educated guesses about where the stock is likely to find and bounce off support, employing risk controls through position sizing OR we can simply get paid while waiting as the ETF consolidates and possibly resumes its uptrend.
That's at the heart of a put selling strategy, where the goal is to acquire the stock at a discount from current market prices. After a long uptrend, price can flatten out for several months before marching higher. This gives the trader the chance to book income by selling each month as she attempts to have the market "put" the stock to her at a lower price. With earnings season on the horizon and implied volatility increasing as a result of the uncertainty associated with quarterly earnings reports, inflated option prices make selling a more attractive strategy than buying when making a directional bet.
Because our capital is not riding on the performance of any one company during earnings season (which can result in huge moves when quarterly reports deviate from analyst consensus expectations) put selling risk is diversified and gives us the chance to acquire TAN at below-market prices without losing sleep at night. The Chaikin Very Bullish Power Gauge is another important comfort-inducing metric, since fundamentals contribute to the overall PG rating, A very bullish rating implies that Solar Companies are priced reasonably with expectations for future net earnings growth and cash flow. I'll walk through the process during our trading meeting, and we'll discover together whether selling out of the money puts on TAN.
That's at the heart of a put selling strategy, where the goal is to acquire the stock at a discount from current market prices. After a long uptrend, price can flatten out for several months before marching higher. This gives the trader the chance to book income by selling each month as she attempts to have the market "put" the stock to her at a lower price. With earnings season on the horizon and implied volatility increasing as a result of the uncertainty associated with quarterly earnings reports, inflated option prices make selling a more attractive strategy than buying when making a directional bet.
Because our capital is not riding on the performance of any one company during earnings season (which can result in huge moves when quarterly reports deviate from analyst consensus expectations) put selling risk is diversified and gives us the chance to acquire TAN at below-market prices without losing sleep at night. The Chaikin Very Bullish Power Gauge is another important comfort-inducing metric, since fundamentals contribute to the overall PG rating, A very bullish rating implies that Solar Companies are priced reasonably with expectations for future net earnings growth and cash flow. I'll walk through the process during our trading meeting, and we'll discover together whether selling out of the money puts on TAN.
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