The markets have once again shown remarkable resiliency and
surged up after a brief pullback. Some of my signals showed up mid-week but I
was unable to post on my blog then. It has been a hectic week for me; including
being stranded in Detroit
for a night because of bad weather in the South… imagine that.
Dow Jones 30 is pointed up. So is the Nasdaq 100, and even Gold
Miners ETF NUGT looks like it has some life. I have been entering long as
directed, except I do think we are starting to top out based on stochastics.
Trying to second guess the market with an indicator like stochastic can be
disappointing and although I have entered, am far from fully invested. I
purchased IYR again, SPY and also NUGT. Still riding high on RFMD… which is up
around 20% from my entry point. My position is relatively small, so I am not
looking to retire from that trade! Besides, till I close the trade, it is
simply profits on paper. I had a brief chance to add to, tried a couple of buy
orders using limit orders that did not take and chose not to chase the stock.
If it pulls back, I will add to my position. If I get an exit signal, I will
get out immediately… in fact I may take some off the table next week…
I am still holding some put positions on SPY that are now
underwater… insurance that is costing me right now..
Rahul: Thanks for your excellent posts. How does the rate of return of your active trading approach compare to the rate of return of an unmanaged index like SPY with dividends reinvested? How do the annualized rates of returns compare on a 1, 3, 5 and 10 year basis? Paul
ReplyDeletePaul, see my latest blog dedicated to answering your question... Rahul
Delete