• Portfolio Management for July 29, 2014

    Yesterday, I tried to keep the TNA short position but was obliged to cover it when IWM reverted back above the 200MA.

    I also bought half a SSYS position at support, but weakness at the EOD on SSYS prevented me from buying the second half position. SSYS earnings are next week, but the DDD earnings are on Thursday. hence, I might close the SSYS long before DDD issues its earnings. A stop below the 50MA limits the risk on this 1/2 position.







    The idea for this week is to only trade ETFs, which will react to Fed liquidity more than it will to specific earnings.

    If we look at the SP500/CTick comparison, we can see that they have moved in lockstep for the past 20 days (CTick is in black.)



    The IWM/CTick comparison is shown below. We can also see that tops and troughs are corresponding, but that IWM reacted more to the downside. This means that shorting TNA ought to work better when it corresponds to top reversals in CTick.



    We can also see below that momentum stocks are attracting money and are outperforming TNA. This might be an indication that a "catch up" reversal in TNA is under way.





    The list of trades for today is below.