Trades from my trading system will be posted here. They are time-sensitive and you should not put real money unless you subscribe to my real-time service. Once again, trades posted here are not recommendations for anyone to buy or sell stocks. I am posting the trades here to show that it is possible to beat the market on a regular basis - a counter example of the efficient market hypothesis. To keep it simple I will be holding only Cash, SPY (Long) and SH (Short) positions.
Thursday, April 9, 2009
A great buy signal
Price movement, volume, and sentiment are all aligned. I will put in 1/2 of cash into SSO at tomorrow open.
Sector analysis is much harder since there is always sector rotations. Market direction is relatively more reliably predicted. That is why I would rather use SSO/SDS (2x) or BGU/BGZ (3x) etfs. I prefer SSO/SDS since they are a little more liquid than BGU/BGZ. With BGU/BGZ you can try to be invested 1/3 all the time and adjust your direction with the other 2/3 of the money. The financial sector is very volatile and much harder to predict.
What's your comments for financial sector 2X or 3X ETFs?
ReplyDeleteSector analysis is much harder since there is always sector rotations. Market direction is relatively more reliably predicted. That is why I would rather use SSO/SDS (2x) or BGU/BGZ (3x) etfs. I prefer SSO/SDS since they are a little more liquid than BGU/BGZ. With BGU/BGZ you can try to be invested 1/3 all the time and adjust your direction with the other 2/3 of the money. The financial sector is very volatile and much harder to predict.
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