CHAPTER 5

Selecting the Best ETFs

After you determine which sector indexes are showing the most relative strength in relation to the broad market, the next step is to select the exchange-traded fund family with the best chart pattern or relative strength within the sector. The top-down process of first identifying broad market direction, looking for the indexes with the most relative strength, and then finding the strongest ETF family within the sector ensures that you are always focused on buying the best ETF of the hundreds available.

The process for finding the strongest ETF family within a particular sector is essentially the same as identifying indexes with the most relative strength in relation to the broad market. The difference is that, ...

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