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13/2008
23.06.2008
Editor's
Notes
Trading
Tips:
Trend trading is more profitable
Sector
and ETF
Watch list
Stock
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Dow is smashed down
Hello,
stock markets are in middle of downtrend move
Especially Dow Jones Industrial index is hit hard. Next target is 11000
points. I closed some of my Dow shorts and I plan to enter shorts again
using inverse ETF (DXD) in any pullback.
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Not too much to say. Markets are dropping down and most of sectors are in bearish mode.
There are only islands of strength represented by Utilities and Russsia and Canadian ETFs.
I think that European stock markets will be hit much more by this
downtrend move so if you can trade these markets , check situation over
there. I am short DAX, IBEX (Spain) for several weeks already.
As I mentioned I am not only bearish to stock markets but also to price
of bonds. I expect that interest rates all over the world will be
moving higher and therefore price of bonds should drop. Watch also this
area for possible short entries.
Happy trading,
Richard
Trend trading is more profitable
Any trader who is trading with prevailing trend has bigger chance to make profitable trades. So it is good to know what is current prevailing trend. It helps trading a lot and movethe edge to trader's side.
.... top of newsletter
Sector and ETF Watch List
Most sectors and ETF are in negative - bearish - mode so here I point only most interesting issues
Long
ETF watch list: XBI, RSX, EWC, DBA, XLU
Short
ETF wacth list: XLF, XHB, XLI, XLP, SLV, GLD, TLT, IEF, FXI/GXC, PIN, LQD
Inverse ETF long : SCC, SKF, SZK
As I mentioned above, Canada ETF is looking bullish . I monitor this ETF to see how it will act near support level near 33.50.
Stocks Watch List
Software looks most promising on long side. Shorts need some type of pullback to offer best risk reward ratio.
Long
Watch list: CPHD, CRL, MYGN, SVNT, VPHM, AUXL, BG, BMC, ZLC, STR, RHT, QSFT, PMTC, NYB
Short
trade watch list: MNST, KMB, AN, HOT, CMG, NYX, GIL
Questions ?
I will be pleased to reply to any of your questions. Do you have
something to discuss ? Or would you like to read something in next
issue of newsletter or on my web pages or in my blog ? Let me know .
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