Monday, February 3, 2014

What perks up, can turn South 2/3/14

“IYR and VNQ (Real estate ETFs) are showing upward signals. In my Ivy Portfolio selection I am currently in AGG (Bond fund) and now will put money into IYR (Real estate fund) at market open Monday. “

That is how my last post went. But sometimes what perks up turns South in a day.
Today we had a big down day. Dow Jones 30 was down over 300 pts and major indices like the S&P 500 (SPY) and QQQ all turned downwards over 2%. Unfortunately the IYR turned down as well and my trading system did a fast turn around from up to down. Yes, I purchased some IYR this morning at market open but tomorrow, I will be selling it at market open and closing my position. Why? Because I will follow my system even if it means it turns tail in a day.

In the end I believe we need to cut our losses quickly and hold on to our winners.


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