Saturday

The Inflationist: Weekend Summary

2 Comments January 17, 2009 – 10:34 pm |   | Permalink |  Print This Post |

The Inflationist's Portfolio

Our portfolio is up 9% (*Note: including unrealised profits in our Trading portfolio) three weeks into 2009. It is way too early to be gloating as seasoned traders would know. By now, we are accustomed to the roller coaster rides of the market - one day you are up, the next your account is so deep in the red you feel like closing out and taking those losses (most do out of fear). It is a psychological game, and we feel that writing our plans in advance here actually helps us trade with discipline. So for those traders out there reading, sign up and trade publicly with us. Risking public humiliation makes you think twice before you take a trade. We took profit from a stop loss (profit protect) at 8280, and failed to re-long when DJIA fell to 8100 as we were not watching the markets that day. We hope you did, and if so, we would put a stop loss at your entry point (or slightly above to take some profit). We put a profit protect for our DJIA at 8080, for our 8050-entry long DJIA position - ie worst case scenario is a profit of $150.

This pullback is near its end - maybe another day or two. Our indicators suggest another wave up is approaching, despite the media’s doom and gloom. Every blog/news article we read have suggested further falls to challenge November lows - a few experts with billions under management have predicted DJIA to fall to 6000 in the next few weeks. The Inflationist feels safer going long in this environment (with our indicators remaining on BUY). However, anything is possible. We are in a bear market with a looming depression. Raise cash whilst you can before the next crash. For the next few days, our plan would remain the same: long at significant intraday falls above 7900. The Inflationist is looking at another trade - we will update you soon. 

If you have an informed opinion on investing that you want to share with The Inflationist community, we welcome you to register as an author. The best way to contribute to The Inflationist is to sign up for “The Inflationist Challenge 2009″ and to manage your own virtual portfolio. That way, your portfolio performance speaks for the quality of your articles (price action is all we care about really). The Inflationist strives to provide objective, transparent stock recommendations leveraging on public investing talent.