| | Watch video presentation of this material here Following last Friday’s gap-up, the S&P 500 large cap index really went nowhere this week gaining only 0.2%. The large caps are still on our buy signal and no serious selling has yet taken place. |
The Russell 2000 small cap index was also flat for the week with a gain of 0.07%.
I opened a small short in Russell 2000 by purchasing an inverse ETF called TZA on November 19th. This was based on the fact that Russell is still bearish in my book. I was forced to cover my short on November 24th because trade did not go my way. I went away with a tiny loss because I sized my position appropriately.
In your trading it is very important to trade positions you are comfortable at!
I opened a small short in Russell 2000 by purchasing an inverse ETF called TZA on November 19th. This was based on the fact that Russell is still bearish in my book. I was forced to cover my short on November 24th because trade did not go my way. I went away with a tiny loss because I sized my position appropriately.
In your trading it is very important to trade positions you are comfortable at!
Bonds gained steadily this week and came upon a buy signal on November 24th. I added to my open TLT and AGG positions. Gains in bonds even in the face of all-time highs in stocks shows a substantial amount of fear in the markets, or possibly reflects the gains in the US dollar.
Gold miners were in the middle of a tradeable counter-trend bounce when on Friday they gapped down and continued to close as much as 8.66% down! This triggered a short signal per our trading system.
The biggest story of the week of course was energy. USO dropped over 8% on Friday on the heels of OPEC meeting!
Oil related funds and stocks had a very bad day. XLE gapped and closed almost 6.5% down, thus triggering a short signal per our system.
A short week, full of events!
Best Regards and have another great trading week!
Alexander Berger (www.MasterChartsTrading.com)
Disclaimer.
Open positions in: SPY, AGG (added), TLT (added)
Closed positions: GDX, XLE, TZA
New positions: DUST, ERY
Best Regards and have another great trading week!
Alexander Berger (www.MasterChartsTrading.com)
Disclaimer.
Open positions in: SPY, AGG (added), TLT (added)
Closed positions: GDX, XLE, TZA
New positions: DUST, ERY
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