The Trading Digest

The next 2 entries for the T2108 ETF system are:

EWT

EWU

Taiwan and United Kingdom.

This brings us to 4 holdings and we have 4 more slots available as long as we remain under 20 on the indicator. Market is very very very fear wrought at the moment. It has the feel of a really big down move coming. But I suppose that is why bounces in this type of environment can be quite powerful as people look to quickly gain long exposure and shorts cover their positions. Either way we’ll know soon enough.

I see John did a post. I have reasons for not keeping up with the blog that are a bit different. I am quite lazy and get kind of bored trying to post same the same crap over and over. Maybe the blog muse will visit me sometime soon.

Dave Johnson

As some of you may have noticed, I haven’t been posting much recently due to multiple factors. The first being my “real” job has been taking up significantly more of my time, primarily due to business travel. Amazing how spending hours stranded at random airports cuts into your stock blogging time.

The second is that I’ve been trying a slightly different approach to my trading. Where I used to be a voracious reader of everything market related (news, blogs, books, forums, etc), this past quarter I’ve done little more than update telechart to look at charts, read my favorite blog (alchemy of trading) and of course IM/talk with Dave.

In spending less time, I’ve noticed my trading has become less taxing. I’m no longer worried if I miss an open, or if I haven’t read any news. When on business trips, days go by without me even having a chance to look at my IB account.

The result of all this has been positive, my account has been doing well and trading no longer feels as much like a 2nd job. I’m not worried about missing a few days action one way or the other.  Trading is such a strange thing, unlike almost every other profession, the results are often not at all commiserate with the amount of effort expended.   For those of you that have full time jobs, remember that making 10% spending 10 hrs per week, is a much greater return on your time than making 15% spending 50 hrs per week.

- John

Some of you may remember the system that triggers when we get very oversold on the T2108 indicator that I have highlighted in the past.

Today that system is buying:

IWB and MDY

If we get another big down day you can expect it to buy another pair of ETF’s tomorrow. Remember based upon historical drawdowns keep this system a small portion of your total portfolio. 10% is about right. Have to do something with my high cash position since equity trend stuff went to cash over last few weeks.

Have a Great Day!

Dave Johnson