Monkey Throw Dart: Trust or Trade

Tuesday, January 6, 2009

Trust or Trade

Thinking that the market is due for a little retracement and still using swing trader mentality, I jumped ship and moved my stop up to the + 10% area and was stopped out in no time at all. Look to the left under 'CMI Trades' and you can see that the mechanical system overtook my 10% gain at least in the short term. Anticipating the initial buy day three weeks ago, and selling early today caused this divergence. We will see if the price comes back down a little or if we continue upward. I am expecting the former. I would have trusted the system more if it was more responsive during the September to December volatility but no sense in complaining about making money.

The plan now is to wait for a small retracement and dive right back in to the QLD if the bull signal is still there.