Suggested to buy TBF when rates were on a 17-year support line (see post here) , with a 4% trailing stop. Since then rates rallied and now have fallen back, getting very close to the stop.
For Aggressive investors, the inverse Basic Metals ETF (SMN) was purchased last week (see Grrr…ressive post here) with a trailing stop of 8%. Metals are struggling today, yet if the upcoming announcement creates a big rally, bring stop down to 4%!
I believe QE2 is more hype than substance, yet my opinion doesn’t matter. Keep these stops in place in case some wild action takes place.
The large “High Yield” mutual fund positions owned will not need to be addressed right now. Any purchases this morning of Chile (ECH) has a new stop on it already.
Another day that reflects not all bonds act the same…
Rates are moving smartly higher this afternoon, TBF moving up (2.2%+ at this time)and High Yield ETF (JNK)moving up too (up .40% at this time).
Day not over with for sure, yet remain comfortable to be short governments and long high yields…for now!
I know the feeling.
Tbf pulled right to it’s 50 day moving average and bounced
Err…Stop loss triggered on TBF right at the bottom just before the bounce. Hate when that happens :O
Yep. Tmv an experimental holding of mine was down 3% and within 15 minutes was up 6.5% (almost a 10% reversal) the fed is omnipotent! Ha ha.
looks like inverse TBF rallied on news of more money printed by FED
dk…
I didn’t mean it had a new stop, just the stop was new today,
that is what I meant by “a new stop already.”
Sorry for the confusion
Chris, you mention a new stop on ECH, but I still see it at 74 in the post. Where can I see the new stop? Thanks
The market response during the first 10 minutes of QE2 has been almost comically indecisive, down, up, down, up…
I get the impression that every trader is asking the guy next to him, “Hey, is this good or bad?” 😉