More Reaching And Grabbing
198 replies to this topic
Posted 06 January 2003 - 07:22 AM
look at that ramp up in gold.
this morning is going to be interesting.
Posted 06 January 2003 - 09:24 AM
When the ADX declines it shows the stock or market is becoming less directional and a sideways channeling motion is usually the result, and it's best not to use a trend following method.
Once you see ADX turning down you have to be wary about adding to positions, and start thinking about taking profits or tightening stop loss targets
-Trade only from the short side when the -DI is above the +DI
(which is currently the case)
This is what the chart actually shows - a falling ADX and -DI above +D1!
CLEARLY NO CLEAR SIGNAL
Trading long very risky now.
Using this system one would be short on Monday.
Posted 06 January 2003 - 09:52 AM
CONTRARIAN VIEW AND POLISH BONDS
From a purely contrarian view I think Monday will be a down day.
An interesting factoid: Polish Bonds the Best performers.
On average, Polish debt has returned 50 percent since the start of 2001, including reinvested interest, the best among bonds tracked in Bloomberg indexes, and 20 percent this year, also the top.
(now dont anyone go rushing into Polish Bonds - its already a rear view mirror story - but Russian Bonds might be worth a look!!)
Certainly better than US Bonds which have only one way to go now - DOWN.
Just proves a point that some investment somewhere is always going gangbusters.
Steel, chemicals, conmodities, builders, building materials, gold, oils, coal, any currency against the $US .
PS About time even the poor old Japanese stockmarket had a bounce!!
Posted 06 January 2003 - 02:19 PM
The main reason Polish bonds have been gaining is due to their acceptance into the EU and the fiscal disciplines that must be adopted in order to join.
I posted previously of a bank at www.everbank.com that has such a product focusing on government debt for potential additions to the EU. I know I sound like a spokesperson for them, but they have done a great job with my funds that otherwise would have been camped in treasuries and CDs. Check them out, its well worth a look.
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