The Average Investor's Blog

A software developer view on the markets

A Crazy Week

Posted by The Average Investor on May 7, 2010

The markets have been just going down relentlessly. Accordingly, I got two sell signals from my system.

First, the emerging market trade got closed due to a stop loss. The loss there was 5.8% (my real loss was bigger, but that’s because I forgot to renew my stop loss with my broker), and that’s after being a positive trade for a while. I’d like to take another look at my strategy for the emerging markets, thus, no short position was opened.

The US REIT finally switched into sell territory. I have been itching to sell this one for a while (and to pocket as much as 70%), but decided to stick to my system. Unfortunately the last few days have erased a decent portion of the gains (these ETFs move like rockets), still I made about 41% on this trade. I also immediately took a short position by buying DRV (3X Bear US REIT).

All my trades can be found in the archive. If you haven’t noticed, there is a link in the top of the page.

I’d expect a few other instruments which I follow to turn into short territory and I have no problem shortening the market at this point. More action likely next week.


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