As the markets begin to show signs of weakness, questions about the sell stops keep coming in. Here’s one from a reader asking for clarification: You also suggest selling a fund if it has dropped more than 7%from its most recent high. My question is, if a most recent high occurred in May this year and the fund/ETF is down …
Front Runners
Seeking Alpha featured an interesting piece called “How Traders Are Front-Running ETFs:” Another aspect of exchange-traded funds (ETFs) coming to the fore lately is front-running. That’s the practice where traders buy ahead of large orders from ETFs and short sell ahead of large sell orders. They scalp profits by flipping their newly acquired long positions back to the ETF at …
No Post
Due to my travels back from Germany, there will be no post today. Regular posting will resume on Tuesday.
Sunday Musings: Dead Men Walking
Despite the market’s sharp rebound off the March lows, I have questioned the fundamental reasons on which this alleged economic recovery was based. To me, it was nothing but government stimulus along with wishful thinking that supported this move into the stratosphere. What happens when the stimulus ends? My concern has always been that a recovery, such as we’ve seen, …
How High Can We Go?
If you look at the chart of the domestic Trend Tracking Index (TTI), it’s obvious that the market has rallied since March without regards to the laws of gravity—so far. The million dollar question is “how high can we go?” Every investor expects a serious pullback, but so far it has not happened. Maybe the chart of the TTI can …
No Load Fund/ETF Tracker updated through 10/22/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpWhip-saw moves left the major averages with slight losses for the week. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now crossed its trend line (red) to the upside by +8.53% keeping the current buy signal intact. The effective date was June 3, 2009. The international index has now broken …
