You can see the above chart of the Q's and where I have legged in to the first and second portions of the position. The plan now becomes to leg in one more third on a down close today if we get it. Once again the whole idea behind this approach is to buy into extreme oversold conditions in up trends. As I stated yesterday, this is not an approach I am completely comfortable with since it is so contra to the way I trade everything else, but the test results from this approach are very good. Testing is one thing, real money is another, so that is why I am doing some of these trades live to get a real life feel for whether I can work with this in ETF trading. I do not know at this point even though the trades I have done have all worked so far, whether or not I can trade like this. Trading with no stops is so contra to how I have traded for so long it is not comfortable to me, but sometimes you have to get out of your comfort zones.
We do have month end coming which in general has upward biases for the Bernanke's, so we do need to be looking for an oversold bounce at the very least here.
This chart shows buying at the end of the month of May and exiting at the beginning of June, and you can see that has been a decent trade over the years in the Bernanke 500. You can't just blindly trade off this but it does tell us there has been a bias historically during the end of May. If we do get this bounce and we may not, it should setup the short of the year in the Bernanke's.
I am taking another shot at Bonds here at the spot displayed on the chart, and I am also taking the ETF TBT equivalent of it if the trade fills.
I am expecting a Dollar decline and a currency rally, I exited my Dollar long trade already. That is it for now.