I was careful this time, waited and waited more, before I first added UYG at 23 on June 24th. It was down from 35.7 (intra-day high is 37.2) from May 2nd. I thought I was picking up a quick bargain on a bounce. Now, just 8 trading days from June 24th, it's 18.1 (intra-day low is 17.9). So it's safe to say, UYG halved in two months. I added UYG again today. My heart says yes, my gut says yes, even though my brain says no!
- I am trapped. And I added DDM end of last week.
- I was right to exit commodities and related stocks like POT, MOO, KOL, MOS early and took great profit early in June.
- But I was wrong and too early to jump in UYG.
- Now I think it still can go either way, but the most likely case is for a bounce to release the energy: it's been pressed into 45 selling days for UYG since it touches 37.2 on May 2nd, without a meaningful bounce. I am following my gut here.
- Today, oil dropped, and airlines bounced. The only thing prevents the rally is financial news from FNM and FRE.
- I'll keep adding until I am running out of cash.
1 comments:
Thanks for the insight. Now all your 4 conditions for a bounce (oil is close enough to $150) are met, do you think we'll have a strong rally like March? More than 10% for Dow and S&P500?
Keep up the great work!
David
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