Stock volume on the exchanges has been down-right anemic as of late; in fact, yesterday’s volume was the lowest we have seen during an August (which is historically the lowest volume month) in nearly 40 years. There are several reasons for this low volume, namely that large, institutional traders and hedge fund managers are out on holiday until after Labor Day.
Those of us who are lacking a house in The Hamptons still show up to trade every day, but are greeted with small movements in indexes and increased volatility in individual names. While this reinforces the case for being a stock picker, even well-loved names can make outsized moves in the wrong direction on low volume tapes. Therefore the best way to grind out day-trades is in leverages ETFs—that is what they were developed for anyway!
Here is a short list to copy, print out, and keep on your trading desk. Rest assured that one of these is guarantied to be moving around even on high volume days:
Ultra Short ETFs
• Proshares Ultrashort Basic Materials SMN
• Proshares Ultrashort Consumer Goods SZK
• Proshares Ultrashort Consumer Services SCC
• Proshares Ultrashort Dow 30 DXD
• Proshares Ultrashort Financials SKF
• Proshares Ultrashort Health Care RXD
• Proshares Ultrashort Industrials SIJ
• Proshares Ultrashort 20+ Year Treasury TBT
• Proshares Ultrashort Oil & Gas DUG
• Proshares Ultrashort Nasdaq 100 QQQ (NYSEL QID)
• Proshares Ultrashort S&P 500 SDS
Ultra Long ETFs
• Proshares Ultralong Basic Materials UYM
• Proshares Ultralong Consumer Goods UGE
• Proshares Ultralong Consumer Services UCC
• Proshares Ultralong Dow 30 DDM
• Proshares Ultralong Financials UYG
• Proshares Ultralong Health Care RXL
• Proshares Ultralong Industrials UXI
• Proshares Ultralong Oil and Gas DIG
• Proshares Ultralong Nasdaq 100 QQQ QLD
• Proshares Ultralong S&P 500 SSO
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