Today the short-term model neared the oversold region heading into the close. It is not quite there but is very close and I believe that it is close enough to recommend an exit in this environment.
Remember that I had suggested a stop loss when the trade was profitable and near oversold last time. That had resulted in a breakeven trade if following that suggestion. However I also said that I would post the exit when the short-term model actually got to oversold. So that is what I am doing now and would definitely suggest exiting if you have not done so already.
The closing price on SDS is 102.50 today. I will use tomorrow's opening price as the trade exit price to more accurately gauge the profit/loss of anyone following these updates.
Recommendation:
Sell SDS with a market order tomorrow morning (10/23/08) if you are currently holding SDS shares.
Now in this case I am suggesting using this oversold signal as an opportunity to buy SSO. SSO is the exact opposite of SDS. SSO will profit as the market rises and vice versa. I will use SSO's opening price tomorrow as the entry price for the trade.
Recommendation:
Buy SSO with a market order tomorrow morning (10/23/08).
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Hey, I really want to learn more about the stock market since I have been buynig some shares and I don´t know how to handle them much. I bought in Argentina because they have very good companies to invest in. The tourism industry for example.- When I travelled there, I realized that almost all of the furnished apartments in buenos aires were being rented meaning that the country was full of tourists so I decided to go for it. It´s been going well but I need some advice.
ReplyDeleteI´d appreciate it!
Kim