Sunday 12 February 2012

Just hanging

Keep watching
The markets took a tumble on Friday and my new portfolio took a step back. Nothing terrible just losing a little of the ground that had been made. One more of the UK wave trades hit its target and I took profits. There are just four left to go plus the new ones I bought on Thursday. They continued to do well despite the pull back in the market showing that the strategy is good as long as you are careful.

I have reviewed the US wave purchases and have concluded that their poor performance is down to bad judgement on my part. In an excess of enthusiasm, I bought too high up in the range. I now need to decide whether to cut losses and move on to better prospects, or to wait to cash in the meagre profits that I now believe is the best I can expect from this miserable batch.

I have used up most of my US$ so I have none left to try out new strategies. I have now found good VectorVest selection criteria for buying into reliable profits on the US market and I am anxious to try them out. The first group that I bought on Monday are already showing a modest profit. One of the picks is up 4% in a week.

It continues to be hard work digging out good UK strategies since I have no mechanical aids. I have to do all the work manually. I am half way through the task and have five promising candidates. I bought shares using the first one that came to light on Tuesday. At present the selected shares are struggling because all but one came from the mining sector which took a hit on Friday. But it's early days, I will keep the faith.

As for the market, commentators are suggesting that it is overbought and due for a tumble. I don't listen to commentators, preferring to watch the charts. So back we go to the old Dow chart which shows that Friday's fall tried to touch the top of our old rising wedge but pulled back at the end of trading. A promising sign for us bulls. On the other hand, if that wedge gets broken to the downside I'll be out of there like a shot and will rejoin the bear camp.

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