Portfolio Management for March 8, 2017

Yesterday, as soon as the market opened, I knew that the XME position was in trouble, because the MF started to weaken. However, I hoped that afternoon buying would push XME back up at least to 31.15, which had become resistance and was my entry price. Unfortunately, afternoon buying was not strong enough as the whole market dragged XME down through the stop level where I sold.



Before the afternoon weakness appear on the general market, I however had detected a negative divergence in IBB that was probably not originating from the oscillation aspect of the MF indicator. Hence the decision to short IBB.





Even though the general market was weaker, I did not short more as I still believe that there is a good chance that we bounce, because this selling pattern looks controlled.

As a matter of fact, pullbacks just below the 5MA on the S&P500 have offered good buying opportunities in the past 150 days.





The 20 days returns calculation point to an exit target close to $2500. This could occur in two cases: either the Fed does not raise rates or the new administration stuns the investors' world by disclosing an unexpected tax package.



The trade ideas for today are below