Last weekend was Race weekend. First the Indy 500, then Coca
Cola 600 and June 1st we will have the Detroit Grand Prix.. As I
watch these guys and gals racing at 225 mph, I can’t help wonder what drives them
to take the risks that they take? We are all built differently. Some of us are
less risk takers than others. The stock market is a place where we have to take
risks to make money. It is a gamble as all the technicals in the world will not
guarantee what will happen the next day. Still in the long run it keeps you
safer than no technicals.
So with that, I visit a few charts I have written about in
the past and show you some that turned the right way and one that turned the
wrong way. The good news is that with technical analysis, I did not
linger in the failed one long.
Let us start with the ETF called TAN. I wrote about it on
5/17 and mentioned I had a position in it. Entry signal was when the minor
signal is up along with the major signal also being up. That occurred on 5/13
at $22.00. Well, seeing the futures were up today, it was a good day to
download half my position at $26.00. Profit of 18% in two weeks…
I got a nice TAN but it is quite volatile right now, so be careful if you are looking at it just now for entry.
I got a nice TAN but it is quite volatile right now, so be careful if you are looking at it just now for entry.
Gold has been on a downswing for a long time. It is truly
unfortunate for the gold bugs that refuse to use technical analysis as the ETF
GLD has dropped almost 35-40% from its peak in the last several months. I am
posting the chart on GLD. I am glad I was able to get an associate of mine out
of his Gold position before some of the large drops.
Finally regarding Bond funds… I had an entry position in TLT
and was wondering if TLT was perking up. Well that tune changed as you can see
from the charts. I took a small loss and exited all my TLT position and have
been out of bond funds based on the exit signals. Never know how long these
down signals last. Today the bond funds again took a big hit. Best to stay on
the sideline. When this tune changes, I will be back in; but not for now…
Great call on TAN. How do you know when to exit? Seems like you might use a 20% profit target, or minor or major red arrows on your chart?
ReplyDeleteGood call... just about what I was thinking.
ReplyDeleteTuesday early morning futures were high. I put in a sell limit order at $25.60 for 1/2 my position and it sold at $26.00 at the open at 18% profit. Rest I am going to sell market open day after when the minor red down arrow pops up on the TAN chart. I don't have a stop.. one could argue against that!
TAN Exit signal- minor red down arrow just popped up from Friday's decline. I have placed a market sell signal for my remaining position Monday morning open. Done till we get the next buy...
ReplyDelete