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Today the advance decline ratio reached 89% and it was not a good day to begin a new trading strategy :-) The only reason my account actually showed a profit for today was due to my short the SP-500 via a futures contract (/ES) which has 50:1 leverage. I did however buy a couple of stocks and we will get to that in a minute.
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This is the daily chart of the SP-500 and with the excessive bullish sentiment carrying on yet another week, I have the feeling the upcoming correction is going to end rather badly for investors long in the market during the next few weeks.
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Also, the True Strength Index (TSI) indicator gave another trend line break sell signal with today's price action. A third negative divergence (not highlighted on the chart) is now in the record books, as well.
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The two purchases I made today turned red with the rest of the stock market. The first was a purchase of Denison Mines (DNN) at $3.61 and its subsequent sale for a 6.6% loss at $3.37. I still do not have the limit stop loss mechanism figured out and by the time I saw that the position's loss had exceeded my strategy, well, I just sold.
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The other 'market order on the open' buy was of Harmony Gold Mining Co (HMY) at $11.44. The white line tearing through the stock price action is a long term trend line that HMY is attempting to recapture. Well, it didn't happen today but I am sure that eventually it will.
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My TSI Trading record has been updated.
DG short term signal
12 hours ago
I've been waiting for this wheel to break for weeks now.... break break already! We will be able to get into gold stocks on the uber-cheap :)
ReplyDeleteDaniel K,
ReplyDeleteIf you happen to be reading, can you post your comment about the current market?