Berney; RE:" Dead Bird in Hand - Two Riding the Bull "
>I really think I had the right idea. There are only 3 financial stocks in the DJIA. Today, AXP up 3.9%; JPM 8.1%; and then there is CCI - no change...
...you did have the right idea, TB, the NF.X - Financials Sector Index has been quite strong. Whenever something like this happens to me, it motivates me to trade the BigBoyz sector index rather than picking only 1 component thereof. From previous posts, you may have surmised that I am no stranger to this in the DRG.X - Pharmaceutical Sector, and so prefer to trade the sector index itself: MRK - Merck comes to mind.
Another approach would be to put X% into the bellwether, Y% into a sector fund, and Z% into the (leveraged) sector index; with the idea of having your trading profit target = Y% of kapital, in other words -- leave the 'trading profits' in situ as the sector fund, which becomes the longer-term investment. You and I could think of other tactics, I'm sure, if we put our heads together.
>Is this starting to feel like a bubble or what !
Hmmmm... I have 'legged in to' a rather weird position in CMB - Chase and MWD - Morgan Stanley right now... for the next two weeks, I want them to decay or tread water; after NOV expiry I want them to resume going back up.
XBD.X - Brokers have hit my near-target of 450 +/-8. The next upside target is ~488; the downside support is ~408.
BKX.X - Banks have hit my near-target of ~760. The next upside target is ~800; the downside support is ~720.
IUX.X - Insurers have lagged somewhat; target = ~590 +/-7; supports at ~563 and ~528.
Financials are now at/near 200d EMA support/resistance on my charts.
-Steve |
