On 9/21 suggested that Aggressive investors should take a stab at buying the inverse Russell ETF RWM (see post). Two days later the position was up over 3% and suggested in this post to add a new 3% trailing stop. Since then the Russell has rallied and we were stopped out of the position with a .28% loss. Everyone at this time should be out of this position. Not only did the stops work, the Russell is very close to an upside breakout!!!
Well, one has to be wild and crazy to be playing with TZA, which is 3x leveraged ETF. I dont think Kimble would recommend these type of etfs. I know, because i lost a ton recently, playing TZA improperly.
Actually Chris, from the time of your post, TZA ran more than 10% in 3 days.
CK…
I didn’t phrase it well as usual. If you look back at the post, the inverse position was taken at the top of the trading range and currently the Russell is about 1% above it…not real strong, just working on breaking the range.
NDX is almost at the April highs…way ahead of the 500 and Russell
I recently discovered your site from another site that regularly visit. Glad to discover this site, as you have been on a winning streak this month. (I wonder when your last losing month was, because i can not find any post about losses, other than the 0.28% russell you reported today). Anyways… keep up the great work, and i will be a regular here now.
Thank you! That is what I am attempting to do…per letting the winners run and harvesting at resistance.
Thinking globally – Great strategy, let the runners run, while not being greedy at resistance with US indexes presently range bound. !
Doug,
Per closing out longs and shorts… I harvested a few days ago the 500 and homebuilders profits at resistance, took full advantage of the best september in 70 years. For aggressive traders, attempted to score on defense in the russell, up against resistance and walked away with a small loss.
My goal is to “inflate portfolios regardless of market direction. My plan is to make money and keep it! Wall street plays its music every day of the week from 9:30 to 4:00 eastern…I only want to dance to tunes I like. Right now not dancing in the U.S. major indexs.
When the patterns look correct, will be glad to dance again
Thanks for this update chris. got stopped out today with a 2.5%loss
You must be freeing up some capital for your next big move. I can’t imagine why you’re reporting harvesting longs, on a day that you’re also reporting exiting your short positions on the Russell.
How about a strangle of today’s candle??? Buy stop above the candle, and short stop below it.
Russell the strongest? what is that based upon?
Interesting that the Russell went from the weakest to the strongest pattern among US indices. Hard to imagine that the Russell would detach (perform invesrely)from the S&P500 for too long.