Thursday, November 19, 2009

What's not to like

So, here's why I didn't open positions on bb/mfi signals other than GLD.

The other etf, SRS, is a short etf. It moves in the opposite direction of the underlying index. I prefer to use etfs that have a direct correlation with the underlying index. It's just simpler and easier to wrap my brain around quickly.

Regarding the company shares:

WMT and POT had unclear confirmations; the mfi was near the line but had not gone into over- territory.

ABX and NEM are both mining companies. I've taken care of that sector with GLD, so I passed on them in the interests of diversification.

KO's mfi reversed back into overbought territory, negating the confirmation. DTV ended up not confirming; the mfi stopped declining prior to the end of trading.

LMDIA shows the clearest signal. I didn't do it because -- well, I didn't do it. I was focused on GLD, entranced by glitter and all of that. I tend to give priority to etfs rather than individual companies. I'll be watching LMDIA closely on Friday.

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