Ten ETFs Sold Short

If you've avoided short selling because you're not comfortable with identifying such setups, this chapter can help you. It continues the discussion on how to time your entries and exits, focusing on actual exchange-traded fund short sales taken.

Short Setups

For a long trade setup, one of the important things to look for is convergence of several support levels on multiple time frames. The opposite is true for short setups, in that you want to see a convergence of overhead resistance levels on multiple time frames. Most of the strategies and trade setups for buying ETFs work just as well on the short side, except that the patterns are reversed. Instead of buying pullbacks to uptrend lines, you sell short rallies ...

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