TrendingTimes.com June 26, 2009
After a 23-day span in the market we
were once again forced into cash.
However, earlier this month we dipped
our toe into the market. We took 30%
of our holdings and put half into SEA,
focusing on ocean going shipping
companies. The other half was
invested in another ETF, USO. USO
invests in light sweet crude oil futures.
Our rational was to take small positions
in investments which: had been out
performing the market over the last six
months, showed positive daily and
weekly price trends with support levels,
and could be the first business sectors
to participate in national and global
economic recovery. Our strategy was
to put a small portion of money to work
and take advantage of the improving
short term trend. Then as the trend
grew stronger purchase additional
investments or add to current positions.
A Trending Times buy alert was issued
for the market open of May 27th.
Actually our timing on the buy was
quite good as the market started to rally
the next day. Our positions were held
until the Dow and S&P started showing
multiple signs of weakness. A sell alert
was then issued for the market open of
June 17th. After placing 30% of our
assets in the market for 23 days we
netted a 1.6% gain. The score board
above tabulates the outcome.
Our current plan is to hold our cash position until a clearer picture develops for the monthly trend.
We will continue to monitor the shipping and oil sectors as we still feel they are good investments.
The concern is more with market conditions. Even good investments decline along with the stock
Trending Times Performance Since Inception
(Above.) The upper line shows Trending Times performance
has not changed much. This is not bad since we have made two
entries into the market. Conversely the market has been down
as much as 25% du