Sunday, June 19, 2011

On The Sidelines

Waiting is painful for me. Not much of a wait yet, but I prefer to be in the market, (assuming it has upward momentum) rather than on the sidelines. With the lack of clear direction I need to wait…and I just do not see a clear direction.
So what did I see in my weekend review?
Well the Market did improve slightly this week.
On Friday we saw what appeared to be a solid bounce with the DOW closing at 12,004, which sounds good…and it is good. But looking at the details we see a pop at the open and a modest and slightly noisy decline for the rest of the day. The S & P 500 showed similar action and the NASDAQ was actually down for Friday
IBD (Investor Business Daily) continues their Current Outlook as: Market in Correction.
Copernicus was not available to me as of this posting. I am assuming the systems there did not see a change from last week, which was pretty bearish. If I see something different when it becomes available I will update this post.
So what should one do to be cautious this week? Last week I said “Cash is good and getting neutral is probably a good plan.”  That still sounds good at this point
I did complete my selling, saying adios to EWG and IBB .
I began legging into SH.,with a 1/3 initial position.  SH is a "helpful" ETF that is an inverse of the S & P 500. This was not enough to make me fully neutral and during the week this appeared at times to be too little and at other times too much. However, looking at the change in value below you will see I don’t have a need to add or decrease this on Monday
As indicated last week, if the selling momentum firms, I will be looking at QID, a nifty inverse of 100 largest stocks of the NASDAQ. I will also look at REW an inverse on Technology, and FAZ a wild, wild 3x inverse of Financial Services.
I will note that most of my dividend stocks appear to be holding up nicely, but dividend stocks are for another purpose and not for trading
Currently my "Stocks for a Trade" now consists of:
None held at this time
ETF's for a trade are:
(All gains or losses shown are the total since purchase)
GLD 6.85%, second purchase 3.25% …up a little from last week
SH  0% change…in at $42.56 and closed Friday at $42.56, so I am right where I started on this one
Normal ETF's:
None held at this time
Have a great week and I am still hoping for an upward turn…I do not like shorting

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