lafano's  Instablog

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Retired after spending over 38 years in Insurance and five years consulting. I enjoy trading (and investing), as I maintain two active portfolios: short term trading and long time investing. I am studying more about applying technical indicators and oscillators, primarily Bollinger Bands, RSI,... More
  • Market Trend 0 comments
    Mar 18, 2013 8:37 AM

    Market lost some ground on Friday based on some mix results on Industrial Productivity (up) and Michigan Sentiment (down).

    I am still short/sell on the overall market, using SPY. This is based upon clear sell signals generated from my primary oscillators (Bollinger band and RSI) occurring on 3/8/2013. Additionally, the current Stochastic level still indicates an overbought situation, thus supporting my sentiment and position. And, unlike previous reports, MACD appears to be fading.

    Therefore, I have been selling some of my positions into strength, rotating out of others, and have placed even tighter stops on remaining positions. At this time, my current goal is to still protect my profits, without much concern of a potential bounce back. Thus I have placed my stops at respective 20 day moving averages and I may tighten them further if the market continues to trend upward. I normally place stops at three different levels, but not in today's market.

    However, as stated previously, the current upward trend may still have legs and continue to rise to 155.7. The operative word is "may" as this is based on my data and back testing, as the market continues to rise after the first sell alert, which again was on 3/8/2013. On average, it continues to increase by 1.78%.

    I am sensitive to this situation, as volatility remains muted and if the market can make it to the earnings season, early April, it may help sustain the current trend. If not, we may finally see a correction as noted in my previous posting. And, again I am not adding any new money at this time based primarily on the risk/reward aspect.

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