Portfolio 03/27/13

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I really do not know what to make of the market at this juncture.

Yesterday, at one point, my account had dropped by nearly 1%.  With this development, my initial reaction was nervousness, but was soon quelled by trying to not get overly emotional (I could feel the frustration starting to build), thus I decided to stop watching my holdings and let things play out.  As you will see in the results, I finished the day up a smidge, continuing with the ‘highwatermarking’ that has taken place in March.

I keep reading traders that I really respect talking about how this is a “topping process” we are going through.  While part of my consciousness believes that to be true, my time-tested “risk on/risk off” indicator is looking moderately to extremely bullish.

Sure the dynamics of this system are always evolving, but it has been fairly accurate in recognizing “chop” and bearish segments in the market since I started monitoring it.  It is signaling nothing close to either right now.  Additionally, the small cap ETF (IWM) is still the top ranked as the ‘market’ ETF (followed closely by MDY).  This, IMO, is another bullish indicator.

This is objective data.  Though most of my discretionary trades are made based on “gut feeling”, my market-centric analysis revolves around the computation of price data, that which cannot be argued.  Well, *how* I analyze this data is a subjective interpretation, but the content is not something that can be disputed; therefore I have to trust what this is telling me and cast emotions aside as best I can.

Thus, I am positioned for another leg higher and there are also a number of stocks I want to buy (a few of which I highlighted here).

2013-03-27perf 2013-03-27

-EM

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