The markets could not find any footing yesterday and south we went. Oil prices slipped due to the fact that the much touted recovery may not arrive as expected, which would reduce demand.
As is usually the case with sharp market rebounds, the magnitude of this one overshot to the upside and was way overdue for a correction. With talk emerging, that another stimulus package is needed by the end of the year, it simply confirms that all is not well.
If another package is enacted, it will have just about the same effect as the current one, which was zero. It does nothing but elevate hope that a recovery is near, which helps the markets rally, and then we’re back to square one except more debt has been created. It’s a vicious cycle indeed.
This drop affected our Trend Tracking Indexes (TTIs), which now are positioned as follows:
Domestic TTI: +1.28%
International TTI: +6.82%
Hedge TTI: -0.59%
We will hold all positions subject to our trailing sell stop points.
Comments 5
You must have some pretty good funds to not be down 7%. I'm out of mine.
Willie
Will,
We are out of the internationals and still have only a couple of longs but mostly hedged positions.
Ulli…
I am with Will–I am out of both the domestic and international. Using your system of the TTI, when would you reenter? Or do you just wait for a sell and subsequent buy signal.
Anon,
If the trend line(s) does not get broken to the downside, I will re-enter (long) once the old highs have been taken out.
Ulli…
Willie,
When my 8% stops were hit, I hedged 100%. So far so good…small profit on all three hedges.
Kurt