As we are entering a new domestic buy cycle (hopefully one with duration), the question of the proper use of trailing sell stops has come up again. Here’s what reader Al had to say: Please explain how to execute a stop loss order on the end of day closing price as you stated in your last blog. I always use …
Sunday Musings: Trend Following At Its Finest
Not too long ago, I reviewed Michael Covel’s book “The Complete Turtle Trader,” which detailed the teaching of a trend following strategy, or trend tracking as I like to call it, by Richard Dennis. As you may recall, Richard, a wealthy Chicago trader, decided to teach randomly selected students the art of unemotional trend following and proving in the process …
The Dangers Of Ultra-short Bond Funds
It’s pretty much a given that, every time our Trend Tracking Indexes (TTIs) have us out of the market and in money funds, somebody (a client or a reader) will ask if we can’t use the idle cash to buy some ultra-short bond funds to enhance returns. There are reasons why I don’t get involved in those types of securities, …
No Load Fund/ETF Tracker updated through 5/15/2008
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpUpside momentum pushed our domestic Trend Tracking Index out of the neutral zone and into buy mode effective Thursday, May 15, as announced. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now moved to +2.63% above its long-term trend line (red): The international index improved but remains -0.78% below its …
Domestic Buy Signal Generated
Today’s tame CPI report (+0.20% vs. an expected +0.30%) provided enough ammunition for the bulls to drive the major indexes higher. As details about the CPI report became public, namely that gasoline prices fell 1.8% in April, the trading floor erupted with laughter. That goes to show that traders have a sense of humor just like you need to have …
Staying Above The Neutral Zone
Despite a pullback in the market on Tuesday, the domestic Trend Tracking Index (TTI) managed to stay above the upper range of the neutral zone. Its position is now +1.72% above its long-term trend line. If the TTI can remain above the +1.50% level for another trading session, a domestic Buy will be validated, and we will move back into …