Sunday

TheInflationist: Weekend Summary 020209

Post a Comment February 1, 2009 – 2:18 pm |   | Permalink |  Print This Post |

The Inflationist Portfolio 020209

A few of our indicators generated a sell signal Friday, casting doubts to our multi-week rally before further falls. This is typical of turning points which will challenge the psychology of experienced traders. The Inflationist will aim to close some positions (hopefully profitably) to deleverage. Notice how we have been taking profit last 2 weeks, taking our average entry point lower. Therefore, should 7550 give way, we will be making less of a loss. We are not certain if the recent 7900 support will hold - markets may go down this week below 7900, and go close to (but not below in our opinion) November lows; perhaps 7700-7800. The Inflationist aims to put a stop loss for China at 7000, and also Australia at 3400 for one of the long positions.

Our weekend analysis suggest that markets will still head up for the time being, but may edge lower this week nearer to 7550. Prudent to set stop losses and to take profit when the opportunity presents itself. Good Luck this week and expect more from us, especially after Mr Magik gives us his numbers!

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