The Average Investor's Blog

A software developer view on the markets

The Weekly Update

Posted by The Average Investor on Feb 27, 2011

There was a pullback in all markets last week. Of course, on a grand scale, this pullback is nothing more than a blip. The different indexes continue to be heavily over-bought, just a tad lower than the record levels the market posted last week.

Asset Symbol Position Date In Gain
Nasdaq 100 ^NDX Long 2010-09-03 25.45%
US REIT VNQ Long 2010-07-23 16.96%
S&P 500 ^GSPC Long 2010-09-30 15.66%

With the pull back, the fresh position in the Emerging Markets, turned into another whip saw. The loss incurred is 1.7%. The Emerging Markets index has been a good leading indicator for the US indexes over the past few years, so it’s direction is not something that could be lightly ignored.

Emerging Markets (EEM)

Emerging Markets (EEM)


The above chart only emphasizes the point – if EEM breaks the resistant red line for good, the floor is far away. Certainly a chart where a speculative position with a tight stop loss can be taken either way.

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