Watch These Two ETFs On The Next Pulback

When it comes to trading it's very important to be able to anticipate what you will do if the market moves higher or lower.

Right now I think we may pullback a little in the stock market so I'm just going to sit with my short position and manage it as the days unfold. I have utilities, reits and homies short. At the same time I am making a list of potential longs that I may buy if the market does sell off.

Above is a chart of FXI and CHN.. These are Chinese ETFs and they are both in very strong uptrends. If these two ETFs sell off, I'll be looking to possibly buy them around the breakout level (red line). I think that might be a good low risk area to buy. If I do anything I'll let you guys know as I always do.

The point I am trying to make with this post is that it is important to always be one step ahead of the market so that you will be prepared to take action while everyone else is lost and following the herd.