Thursday, June 26, 2008

Try to catch a bounce

  1. I added UYG at the close to average down.
  2. Since market is down over 3% and more than 95% of S&P500 stocks are down, I think that's a good enough indicator for me to bet on a bounce.
  3. Also added XLF and MF during the day.
  4. Today my GDX had a 5% bounce, at least balanced my portfolio.
  5. Now I am still have over 50% in cash and then have UYG as the main position, plus GDX, MF and XLF.
  6. Tomorrow if it stays down, it will close lower at the close, since people don't want to add ahead of weekend in a down market.
  7. On the other hand, an open slightly lower and then turn higher, and close sharply higher is a very bullish sign for the short term.
  8. Unlike last year, which I played options, I don't need to worry against time this time. I think holding ETFs and stocks, you know they'll make a comeback, unless Israel attacks Iran, or something in that magnitude happens, I see a strong bounce near term.

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