Monday, September 17, 2012

Tactical Positioning

QE1 3rd month rally - 18%, QE2 3rd month rally 11%.  Looks like the stats support a buying the dip strategy.

The hardest trade will be holding onto trades that are in the green - even I've already offloaded a large part of my portfolios on the current news.  Buying the dips will be profitable, but somewhat risky; holding onto positions that are in the green is low risk, higher reward strategy.  Fighting my own bias to book gains here.

Internals seem to be backing this move.  How long have rallies last historically?

Global Growth Rates seem to indicate continued positive trends.

However, I've taken my moves to position for a potential retracement on tonight's session.  Taking short positions on the Euro on the 1.31 breakdown.