Let’s start with an update to the only position we had. The SDS which is an inverse ETF representing the S&P 500.
This is what the chart look liked at the end of the day Friday, 13th of March, 2020.
As you can see there was quite a drop in the price. The high attained by this ETF was $38.60. This anchored our trailing stop at $34.59 ($4.01 under the high).
Purchase price was $29.64. Stop price was $34 .59. Profit per share was $4.94 X 300 shares = a profit of $1,485
Our new portfolio balance is $110,087.
To learn more by way of books:
By way of a course:
Let’s take a look at our Futures charts for the five symbols we are following for this exercise. Because most of you don’t have futures accounts and/or are using retirement accounts, or accounts that don’t allow short selling, we will switch to stock symbols when we get a signal.
The S&P 500 was a short sell and then we were stopped out of our SDS position. You can see from the RSI in the bottom panel that it is stuck down in bear territory. I explore this use of the RSI in a video that goes with the books and the course. It is different than using it for over bought/over sold readings. I think it is actually better.
No action here.
We were short oil by way of the symbol SCO. We were stopped out recently with a juicy profit. We will keep an eye on this slippery customer.
The chart above is displaying significant weakness. I cannot, however find a proxy for this futures contract. More on this one next week. As you can see, it has stopped at a support level.
Nothing to see with this chart just yet. The price has crossed above the 21 EMA (blue line). A down day will cause us to put in a short sell. That will be displayed on the stock symbol chart.
This is an interesting chart. Gold is usually a haven when other markets are a bit turbulent. The price closed below support and may just decline to the next level of support. The 21 EMA (blue) is still above the 55 EMA (brown) indicating in our simple world that we are still in an uptrend.
See you all Monday (March 16th).