Sunday, October 2, 2011

You can see it at the pump

This weekend I saw local gasoline prices drop below $3/gal. How long has it been since that has occurred? …less than two years I think, but it aligns with seeing energy ETF’s fighting for last place in the rankings. Also low in the rankings for some time has been the German ETF:  EWG and the financial ETF: XLF.

So what did I see in my weekend review?

First looking at charts for the general market I still see the lateral movement that began late Feb. The recent waterfall drop interrupted this, but it just lowered the graph…. this market is just going sideways, but with lots of waves.

Perhaps the potential of another waterfall drop still exists. However, many companies are going about their business and making profits so it should not be this way, but for now European events with their fears and hints of solutions just keep driving these waves.

IBD (Investor Business Daily) shows: Market in Correction

Copernicus Systems is showing to be short the market. Two out of three money flows are now again trending downwards.

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

AAPL  + 7.01%

ETF’s for a trade are:

SH   +. 11%
GLD  -8.25%
GDX –15.44%

GDX , the ETF of gold mining stocks should recover, but it has now dropped below my most liberal  allowance and will have to be sold.

In my last post I mentioned the purpose of SH was to hedge against  some mutual stock funds that are long in the market and that I was looking at going into a bond fund. This is in process but not yet complete. I may have been premature in reducing my positions in SH a couple of weeks ago and will be watching this. However I am more confident in the bond fund now, as it has a positive total return which few stocks funds are achieving lately.
I hope you have a good week

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