What an ending to the week!! What seemed like a bull ride, ready to scale higher faltered. Yesterday’s move erased all the gains registered by US markets over past few days and went into Red. U.S. stocks will now enter March on shaky grounds next week, with a sell-off Friday marking the fourth consecutive month of declines for a market. One noteworthy point was that it was a heavy volume selling and Decliners overwhelmingly led advancers by more than a 6-to-1 ratio on the NYSE and by a greater than 3-to-1 ratio on the Nasdaq exchange. It’s an interesting sign as it can be interpreted as institutional investors intensifying their selling efforts.
But wait a min, how about this–> Despite a 315 point drop in the Dow, and every other index going to into Red, OPNewsletter portfolio grew over 1.5% on Friday alone without any need for adjustments. OPNewsletter is up +9.0% for March’08. These results exclude any bonus speculative trade results. We invested nearly 60% in 3 main portfolios all 3 are positive. One portfolio is up +1.9%, another one 8.9% and the 3rd one is up 17%.
When we track OPN performance, we don’t lower the investment for return tracking, even though we received credits for adjustments. We count maximum investment we did during the life of a portfolio spread. A portfolio spread means 1 mini-portfolio of each underlying in the suggested ratio.
Dow failed again to clear the $12,750 area and it seems that this is rather becoming more of a powerful resistance that will be cleared only with powerful force before it can trend higher again. Notice, heavy selling volume again.
Have fun, profitable trading, OP
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