The Nasdaq has been trading in whipsaw action for a week now. You never know when it’s going to decide direction, so all you can do is buy the chart pattern without guessing. I bought some QID based on the double bottom on it’s 5-minute chart. QID has put in a higher high, and two higher lows. First entry was a break over the 5-minute high, while the second was on the pullback. I’ve placed a stop below the pivot low of the double bottom. I could use the last pivot low today, but I want to give it some room. 1R is risked on each position.

IWM is going to break out of that channel sooner or later. I may take one of those new small cap Proshares sooner than I think. Trade consciously.

This week, Proshares launched six new ETF’s I’m interested in. I’ve added their symbols to my Proshares page for easy reference. The six are based on the Russell© 2000 Index, and the S&P SmallCap 600. They include:

• Ultra SmallCap 600 ProShares SAA
• Ultra Russell© 2000 ProShares UWM
• Short SmallCap 600 ProShares - SBB
• Short Russell© 2000 ProShares - RWM
• UltraShort SmallCap 600 ProShares - SDD
• UltraShort Russell© 2000 ProShares - TWM

I like these, because they’ll offer a great way to gain exposure to the small cap index world, in a diversified way. It will take a few trading days to build some liquidity, and form some trading patterns, but they’ll be on my watch list.

You can really get aggressive using the 2x, and 2x inverse the index, or average power of these ETFs. You just can’t do that trading the QQQQ.

Generally, I focus on higher priced stocks. The point moves are often greater than small cap stocks, and usually provide needed liquidity. While you can get larger percentage moves out of penny stocks, or stocks priced under $20, they’re sometimes traded so thin, a guy can get into trouble fast. Watch them drop .50 in a flash, when you’re holding a decent amount of shares. Too stressful for me.

I’m hoping these new Proshares ETF’s will allow me a piece of that pie, without gaining the extra grey hairs.