• Portfolio Management For November 11, 2013

    Friday's bounce forced me out of the SDS/SSO positions at the entry levels simply because I will not allow a winning position to become a loser.

    I also opened a new NOK long to profit from the bounce on a leading stock.

    The list of short candidates contains only one name, in this case SLW, which is an indication that the bounce is strong. A weak bounce would have produced many more short candidates.

    The strategy for Monday will depend on what the market does. If the 20DMF's short signal is canceled, then I will enter new long positions on pull-backs. If the short signal holds, then I will probably re-enter a long SDS position on a 20DMF negative divergence.