3-12-2014 comments

The last four days have not been good in the market. IBD reports 6 days of distribution on the NASDAQ in its 25-day look back window. 5 days of distribution is a level that my trading plan requires me to raise at least some cash so I took some action on Monday. Jerry's leaders index confirms that leading stocks are acting weak.

I have adopted Chris Kacher's 10-day selling rule: Consider selling a stock that obeys the 10-day moving average for at least 7 weeks and then breaks below the 10-day moving average. Using this rule I sold TSLA on Monday at 26% profit from my last buy point. If TSLA rallies and regains the 10-day I will have to determine what my next course of action is. My expectation is that the 50-day may become the next likely opportunity.

This leaves my top performing position the gold miner AEM. So far gold is not showing anything like what is happening to copper. Agriculture seems to be on a tear over the last 7 weeks, see DBA.