My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpIn a reversal from last week, higher oil prices and anticipation of a weaker economy took the starch out of the upside momentum for the time being. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now moved to +1.27% above its long-term trend line (red). The international index dropped as …
A Slippery Slope
On Wednesday, high oil prices and the Fed’s release of the minutes from its April 30th meeting sent the markets tumbling. At first, it appeared that the major indexes were able to withstand the relentless upward trend in oil prices but, when the Fed decreased its GDP growth forecast and increased its 2008 inflation and unemployment rate outlook, the damage …
How Big Of A Sell Stop Should You Use?
My recent posts on the use of sell stops have caused some readers to ask a variety of additional questions. One of them came from Peter, who commented as follows: First I want to say that I enjoy your blog very much. Recent articles on sell stops have brought up a question that has crossed my mind numerous times. Having …
Market vs. Limit Orders
Yesterday’s review of the use of sell stops prompted one reader to post the following question: When selling an ETF, should any type of limit be placed on the sell order, or just sell at market price? Buy and sell orders are new to me and I’ve just been buying at market price. I have not executed a sell yet, …
Sell Stops Revisited
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 …