Click on Chart to EnlargeWith the start of a new year and all, I thought now would be a good time to review last year's trade recommendations from the blog.
The table above shows all the trades entered in 2008 that I recommended using the "short-term model". Those are the trades that this blog was built around and intended for. Throughout the year I also gave ideas on some option trades and even made some recommendations on ETFs using other methodologies. None of those types of trades are included above.
Also, anyone who has followed this blog for a while will probably know that I don't typically recommend a stop loss for the trades I recommend. The primary reason for this is that I know from my personal experience that my results would be better strictly following the model for exiting the trade once I have entered. However, there have been a few trades where I suggested a stop placement after entry. The results above reflect those stop orders, and will give an accurate idea of results when managing the trades as I have suggested on the blog.
From the table above you can see that there were approximately 2 trades a month (I started the blog in April 2008). The average trade was about a week in duration. Also, the results were outstandingly positive despite one of the worst years in stock market history.
The symbols in green font are bullish ETF's which profit if the market rises. The symbols in red font are bearish ETF's which profit if the market falls. All of these trades are "long only" equity trades and could be made in an IRA brokerage account or any individual brokerage account. I believe that 2009 will be another outstanding year of trading using this methodology as I believe that volatility is likely to remain well above long term historical averages.
For more information about the funds/ETF's that I typically recommend for these trades checkout
proshares.com (QLD, QID, SSO, SDS, DDM, DXD)
direxionfunds.com (BGU, BGZ)
Pete
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