Friday, May 29, 2009

BGZ Stopped Out

Yesterday SDS was stopped out for about 1.5% gain. This morning BGZ was stopped out at breakeven. So there are no open blog trades right now.

The move toward the recent highs has set-up some bearish divergences among shorter term indicators, suggesting that it is very sensible to look to get back in a trade and hope to catch a breakdown move next week. Because of that, I would suggest staying alert through today because there is a chance that I will post a new trade. The short-term model is no where near overbought, but as I have discussed before, since price came back up to the same level as the last overbought signal, this may actually be a stronger than normal bearish signal (bearish divergence in the short-term model).

The trading has been more active in recent weeks than is my intention for the blog, but that is because of the multiple (and continuing) attempts to get in near the top of this (potential) trend reversal. Also, despite some good indicator based overbought entries the last 2 weeks, we have not seen oversold short-term model signals for exiting, and I have been opting to use protective stops rather than wait for a true indicator exit.


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