My current open positions right now are long the dollar (UUP), short gold (DZZ), short 20 year bonds (TBT) and long AMAT, which is in the semi-conductor sector. Comparing my positions to the above relative strength rankings shows me that I've got good trades on for now. The only categories that I'm not exposed to that I will be evaluating are energy (USO and XLE), copper (JJC) and Materials (XLB) and I'll also be looking for signs of strength in utilities (XLU).Part of what I do to determine trades is that I compare individual stocks with their sector ETFs. For example, with energy (XLE) I watch XOM, SLB, and CVX. In order to take a position, I need to see strength and buy signals in both the ETF and the individual stocks. Here's a snippet of the daily checklist spreadsheet that I use and in this picture you can see the difference between XLE (a little mixed) and SMH (strong):
The above readings tell me that energy is potentially a buy, just not yet. Keep in mind that this is just my system, anyone who owned USO or XLE in the past week made some money...I'm just saying that there's not quite an edge for me in trading energy in general at this point. We'll see what next week brings as traders and investors come back from a long vacation. Have a great weekend!
TLT
No comments:
Post a Comment