Yin and Yang. Two complementary principles of Chinese philosophy. One is negative and dark and feminine and the other is positive and bright and masculine. TLT and SPY are like Yin and Yang in the market. Currently we have an Up signal for SPY whereas last week TLT dropped and produced a Down signal. That is the current state of the market today.
I was expecting a drop and then a strong buy point but the market chose to ignore the drop and just went up. My system triggers were spot on.
I am much more heavily biased towards the up side in my 401K as I wrote last weekend. But I do have some offsetting put options and a position in TLT that I closed last week when I confronted the sell signal on TLT. I remain holding put options on PCP and HOG which still point down. I am long on GLD, and have been for a while as it stays in a sideways position. Also long on SNDK. I closed my position on Ford F with a small profit. And I am guilty of incurring losses on put options on the Q’s and copper against the up signal that my system gave me. I felt that the stochastics were reaching high and it would soon take a breather and go down, and I would exit. Wrong… best to just follow the systems.
I need to continually remind myself that I do not know what the market will do next; but my portfolio will do fine if I just follow my well tested systems in the long haul...
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