SPY still the best all rounder (May 17, 2009)

On Friday, I realised that I missed out one sector...which is related to Crude Oil.
So I looked through all the components of DIA and SPY and IWM again to reevaluate my strategy.

Here is what I concluded:
SPY is by far the best all rounder that covers most sectors compared to IWM or DIA. However, IWM can make the most profits if financials do rally...sometimes up to 80-90%. On the other hand DIA is good for following Crude Oil related sectors.

There are some Pros and Cons for having a good all rounder Index compared to specialized etfs like OIH, XLF, QQQQs. If one important sector rallies and another is in a correction. SPY will appear flat/ complex to analyse, that can be frustrating too.....

So there is no running away from analysing each sector each day.

I also realise that even with Alerts and all sorts of fancy tools....a DayTrader can only monitor a limited amount of trades. For that reason; usually I limit myself to monitoring 3-4 stocks/etf....mainly from Financials, Commodities, Tech, Consumer Discretionary (or could be any Hot Sectors at that moment).

In summary, I've decided to have SPY as my main daytrading ETF for next week. At least if Financials are sleeping, I do see some other sectors moving on my screen...lol.

I welcome any feedbacks/ comments on my thoughts above.