Friday, August 17, 2012

Market update - week ending - 8/17/2012


There is no change to the overall structure of the market. 
Bonds (TLT) continues to underperform. 
Stock (SPY), Agriculture (DBA), and Natural gas (UNG) continue to remain long. 
Gold (GLD) continues to be neutral. 

ETF Status Notes
TLT No position Waiting for next signal
DBA Long Stop Loss: Close below 29
SPY Long Stop loss on a close below 132.5
UNG Long Stop loss on a close below 18
GLD No position Buy on a close above 159. Subsequently, stop loss on a close below 154.16.

Concepts that are worth learning and applying to your trading strategies:
  • Trend is your friend: Buy high and sell higher
  • Goal is not to make more money but how to loose less: In other words, capital preservation is much more important than an attempt to make more money.
  • Have a plan and follow it: Know your exit points for all longs and shorts you hold.
  • If you have a trading strategy, follow it. Importantly, you must also know when not to follow it. Have fun!

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