Sunday, March 13, 2011

What a Week. What did we learn?

Last weeks terrible Earthquake and resultant Tsunami had its horrible effect on Japan. The full effect of the devastation is unfortunately not yet fully revealed.  The Day of Rage being somewhat muted in Saudi Arabia actually drove the price of oil down. 


So what do I conclude in my weekend stock review?


First I weigh in on IBDs Market Outlook changing to Market in Correction on last Tuesday. This was expected and I assume this prediction is conservative in nature


On Friday I was really surprised to see all of the Markets I follow close slightly up.Unfortunately, as pointed out by some, it may be that  Japans misfortune is expected to have a positive effect on our economy as they begin recovery  and later rebuilding


My interpretation of the Copernicus System continues to be long in the Market, but a downward trend is  seen for the near term, just not enough to get me legging out of the Marketyet


In this weeks review of stocks a very large number show interest: BA, BMY, CVX, KO, DIS, XOM, MMM, PFE, VZ, CTXS, JCOM, NTES, ALTR, BIIB, DELL, GRMN and GILD. 


But until the market direction is clearly pointed upward I will not put new money to work. (I am a momentum investor not a value investor)


The hedges that I put in place are not working, comments on that to follow

My "Stocks for a Trade" now consists of:
(Gains shown are the total since purchase)

KLAC up .17 %, absolutely hammered this week

CMG  up 2.29 % down modestly

EMC up 7.78 % holding okay

AAPL   up 11.04 % also holding okay

SLW down 4.7% the silver trade for a hedge, surprisingly downward action for the week, but it is recovering

The leveraged ETF's for a trade:

AGQ up 14.66 % This is a leveraged silver ETF, up modestly and near the sell or rest point

USO up .15%  a straight play on the price of oil, falling from last week as oil fell.

GLD down –1.38 %, another hedge that is not working, perhaps gold just got a little to far ahead of itself, or perhaps many are raising cash

Having the  Sell Rules manage these takes the pressure off trying to figure out what actions to take, I can let the market do that

For normal ETF's, I still have both  OIH and XLE. (oil related ETF's ),  which  are doing fine and  XLF which continues to actually do fairly well.

It sure seems to me that the Market wants now continue the two year upward trend, but if that was a correction it was not much of one…so caution is the word at least short term

Hope you have a good week.

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