Get our favorite ETF ideas—bullish or bearish—with ETF Pro Plus. ETF Pro Plus is a monthly macro strategy note that distills our macro investment research down to our favorite ETF exposures. You also receive Keith McCullough’s quantitative risk management “levels” delivered directly to your inbox each week.
The ETF Pro Plus Levels you receive every Monday are based on a proven signaling algorithm. Here’s how to use them to buy low, sell high…
Hedgeye CEO Keith McCullough’s quantitative signaling algorithm forecasts the likely future price range of any ETF.
Keith has been using (and refining) the algorithm since his days as a hedge fund manager–and it’s now a key component of ETF Pro:
- ETFs get added or removed based on Keith’s signal.
- Keith’s signal is the source of the “Levels” you receive for each ETF on Monday mornings.
What Do the “Levels” Mean for Investors?
The “Levels” you get every Monday are what we call Trend Ranges, looking forward 3 months or more.
As the ETF price gets near (or above) the high end of the range, it becomes more likely that the price will go down.
Near (or below) the low end, the price is more likely to rise.
A Potentially Costly Mistake to Avoid
All of the Long Ideas in ETF Pro are ETFs we’re bullish on.
Once our signal is no longer bullish, you’ll get an immediate notification that we’re removing the long idea from ETF Pro.
So, if you already own one of our Longs, you don’t need to sell all shares as soon as the price hits the high end of the range.
Exiting a position before we remove it from ETF Pro could be a very costly mistake.
That’s because the Trend Ranges may be going up with the price!
In other words, the Trend Ranges are dynamic—and by selling too soon, you could miss out on a big longer-term winner.
How to Use the “Levels” to Buy Low, Sell High
Now that we’ve covered what NOT to do, here’s how Keith and other investing pros often use the “Levels.”
- You can trim your position at the high end of the range.
- You can buy more shares at the low end of the range.
This process may help you:
- Buy more shares at a discount (i.e. "on sale")
- Manage risk when the price goes up.
- Capture the gains from “higher highs” along the way.
BOTTOM LINE: ETF Pro Plus provides our Macro team's favorite ETF ideas based on the Macro outlook as well as actionable buy low, sell high levels.
