Making money then giving it all back and then some is the nature of 2011 which has been for the most part a trendless choppy market wrought by cross currents of quantitative easing (QE) that prop the markets, and headline news (Japanese disaster, European debt issues, etc) which hammers the market.The key to trading in such challenging environments is to always obey your stops so your losses are kept to a minimum, then when a new trend emerges (and it always does), you are there to jump on board and potentially pyramid your position. The gains made catching a trend should more than offset your small losses provided you obeyed all of your sell stops.
Now that QE2 is ending at the end of June, it should be interesting to see what the market serves up in the days and weeks ahead as the Market Direction Model looks for its next entry point.
Practice patience, and continue to keep your eye on the markets since markets can turn on a dime, such as on September 1, 2010 when the MDM went to a buy signal at the beginning on a new uptrend, or on March 12, 2009 which spawned the beginning of quantitative easing.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.