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.