The ETF (Exchange Traded Funds) trading signals were designed for short-term traders who trade QQQQ, SPY and DIA stocks. Even if the trading system generates signals during trading hours, these signals can be used to trade index tracking funds. Each signal is generated in the expectation of an upward or downward market movement. A "Short" signal is generated when the system expects the price to go down. A "Long" signal is generated when there is an indication of that the price will rise. An experienced funds trader may use this information to apply to his/her funds trading with some limitations.

Below you may see an example of a trading strategy that can use QQQQ trading signals to trade Rydex NASDAQ 100 index tracking funds:

• When the QQQQ trading system generates a signal to open a trade and then this trade is closed on the same day, a mutual fund trader remains in cash;
• When the QQQQ trading system generates a signal to open a trade and this trade is not closed on the same day then a mutual fund trader buys corresponding bullish or bearish funds.

The following Rydex funds can be used to follow QQQQ signals:

• Regular Rydex NASDAQ 100 funds are bought when the system generates a "Long" signal for QQQ;
• Inverse Rydex NASDAQ 100 funds are bought when the system generates a "Short" signal for QQQ.

In the same way as described in the strategy above, S&P 500 and Dow tracking funds can be traded on the SPY and DIA signals.

For reference, see Rydex NASDAQ 100 Funds and Rydex S&P 500 Funds history of trades based on the ETF trading system that generates signals for QQQQ and SPY stocks.