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Philip Davis
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  • Shameful 1 comment
    May 7, 2010 12:16 PM | about stocks: TECS

    Our broken markets... guest author Allan, who was watching his positions shoot up and down yesterday during the big price collapse, wrote this about the trading action of TYP.

    For a list of stocks that had trades canceled, including TYP, see: 296 'funked up' stocks -- trades canceled. - Ilene


    Shameful

    Just one example of how the markets broke down yesterday.  Below, a daily chart of TYP, the 3X inverse ETF for the Russell 1000 Technology Index.  I've owned TYP since it's Buy Signal on April 30th @ $7.31.  Yesterday, while the market was down over 900 points, TYP traded as high as $9.50 and as low as $0.15. 

    Since it's in my portfolio and on my screen all day, I watched with equal emotional highs and lows.  When it broke below $1.50, my hand hovered above the "Buy" button.  But I knew it was erroneous, would be canceled, perhaps tying up my account and generally be a real mess to deal with. So I passed on "averaging down."

    Speaks loudly to shameful failure of the system, as well as avoiding hard stops and instead, using mental stops, or better yet, options to hedge and protect.

    Emphasis on shameful.

    Allan’s newly launched newsletter, “Trend Following Trading Model,” goes with his trend-following trading system. Most trades last for weeks to months. Allan’s offering PSW readers a special 25% discount. Click here.  For a more detailed introduction to the Trend Following Trading Model newsletter and trading system, read this introductory article. 

    Disclosure: typ
    Themes: trading, stock market Stocks: TECS
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  • Adam Makowka
    , contributor
    Comments (33) | Send Message
     
    Phil, please go back to your last bullish spread trade and see what we wrote. Our blog team picked up on your efforts and some follow your advice, which is excellent in terms of education. POTC said we see the S&P going much lower, and it has. Our Goldman contact continues to whisper in our ear, and it's a lot of negatives. Please stop by our blog from time to time. We recommended the last 4 of 5 stocks short: FSLR, BIDU, GS, RIMM, and GOOG we lost, yet our subscriber list is exploding probably because the ones who listened made Mumbai type money. We still love you, but give us some credit for warning you, it's able to be verified, perhaps 3 posts ago ...
    TC, Adam from Psychology of the Call blog, Where Forward-Thinkers Evolve, One Subscriber at a Time .. ...
    psychologyofthecall.bl...
    8 May 2010, 09:33 PM Reply Like
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