Many people like to travel to places like Las Vegas for life changing experiences or to live on the edge—at least for a few days. If you have that tendency as well, you were in luck this week. All you had to do is turn on the financial markets and you would have gotten more than your monies worth of excitement.
Especially today proved again that using intra day stop loss points is simply not a good idea as I posted about before. The Dow was down over 340 points at one time but a last hour rally along with short covering turned this potential disaster day into a non-event, if you go by closing figures.
Even in my post this morning, I could not see a recovery from my vantage point. Well, that tells you that assumptions should simply not be made. I also mentioned that the closing of the gap can sometimes signal a turn in market direction. While it’s too early to tell, it now appears to be at least a possibility.
Today’s effect on our Trend Tracking Indexes (TTIs) was very small, but the domestic TTI moved back into positive territory, while the international TTI headed further south:
Domestic TTI: +0.23%
International TTI: -1.91%
As announced yesterday, I sold my last international holding, but will hang on to my remaining domestic positions subject to my sell stop or the domestic TTI’s further move below its long term trend line; whichever occurs first.
If you’ve sent me an e-mail, you’re not the only one. It will take me a few days to catch up, so please be patient.
Contact Ulli