Last week was nothing short of records and the volatility continues. The FFIV trade was a loss; as I mentioned in the post that key watch out was market volatility. Hopefully you had a stop loss to get out of the trade timely. This short post is to share that we are entering into some interesting times ahead which requires learning from the past so that when we enter into similar situations, we could reapply and benefit.
I think there are 3 key trades coming (when, I wish I knew). GOLD, Treasuries and Equities (Overall). Gold, I think is about to enter into phase 3 of a bull market (but not till it crosses $2,000); Yields will rise and markets will again offer “Value”. I’ll keep posting as and when I can diagnose those signals. In the meanwhile, if you are an OPNewsletter member, pls spend sometime reading through a) Sept/Oct 2008 boards especially “general market comments” and b) Preparation for bull market (written in Nov, 08). I just re-opened these discussion boards to all the OPNewsletter members. Read those to understand what was going on, real time, then. I hope you find some interesting insights that could be reapplied as we prepare for interesting times ahead.
Bottomline – Make sure you learn from the past, have knowledge/skills, tools and strategies ready to deploy as per the need and have capital to invest when needed.
Profitable Trading, OP