Sunday, June 5, 2011

I Cannot Blame It All On Bad Timing

Well my timing was bad, very bad for last week’s purchases. I saw the “follow though rally” on Tuesday as being a turn in the market and made some purchases of LULU, AMGN and AXP on Wednesday morning. Turn it did, but the wrong direction.
But I cannot blame it all on timing. I just did not think these though long enough, especially LULU. In hindsight I did not have a good reason to buy this other than it was at the top of the IBD 50 and had been for some time…not a good reason at all for a momentum investor.
At this point the losses are not horrible, as you will see, but now it is time to summarize what the market is saying now and look at what to do on Monday
So what did I see in my weekend review?

IBD (Investor Business Daily) has their Current Outlook  as : Market in Correction.

Copernicus Systems is pretty clear this week, go short.
What is the Copernicus System? Well just as Copernicus ability to grasp that the Earth goes round the sun, could fundamentally change people’s view of things far beyond science, the Copernicus Systems has helped me greatly with my investing, perhaps more than anything else I have studied and followed.
Copernicus ranks the ETF’s and stocks followed each week and this is what I primarily review each week. Here is a link to the site. A free trial subscription is available.

In summary I will be selling and getting ready to do some shorting, likely by buying SH which is an ETF that effectively corresponds to the inverse (opposite) of the daily performance of the S&P 500. For the ETF’s I will hold for another week I will follow the box theory: When to Buy and Sell and The Box Theory
Currently my "Stocks for a Trade" now consists of:
(All gains shown are the total since purchase)

LULU -3.98% …a poor choice it was, my fault
AMGN  -3.20% farewell
AXP  -.4.03 % goodbye

ETF's for a trade are:
GLD 7.06%, second purchase 3.44% …will hold as these continue to creep upward, nice gains thus far
EWY 3.82%. A nice little gain and will sell on Monday. Thank you Korea
EWG 3.00% will hold this Germany ETF for another week.

Normal ETF's:
IBB  -.95% will hold and watch for another week
HHH  -3.69%  Adios Amigo, will see you again I am sure

Have a great week.

No comments:

Post a Comment