Saturday, May 21, 2011

Not much has changed even with all the hype in the news

An other up and down week with Little change.  US markets held up better and the defensive sectors did well.  Silver and gold may have settled down and may present a buying opportunity soon.

Let's review:
The Trend Advantage system gave a sell signal 5/3 and then a buy for the open 5/11.  If you had blindly bought on the open you would have been sorry for the markets had a big down day.  If you had waiting until 10:15 am you would have seen 5/11 was not a day to buy long and the buy signal was canceled.  The ETF QID purchased 5/4 has to gain at the close of Friday but not much as this has been a choppy market.

I found a website that listed all the newly created ETFs on the market since the first of the year.  I enjoyed exploring them and found some interesting.  In the end I came back to my system with trading the highest volume index ETFs because the back testing shows you make money with these boring index ETF.  With a new ETF you can not back test 3 or 5 years back.  Stick with what works as in QLD/QID, SSO/SDS, UWM/TWM and other high volume major index ETFs.

Happy Trading
The Trend Advantage.

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