9-28-11- some profits..tomorrow should be great!

Today was nearly exactly what I predicted. I expected reversal of the Dow, although I expected it to come a little later. The market rallied from opening for three hours or so, and then I began to notice the reversal happening. I then sold ARR at the days high, and bought EDZ. As the Dow pulled back 200 points or so, EDZ was making me money. Tomorrow I expect the market to pullback even more, so I decided instead of locking in profits with EDZ, I will continue to hold for tomorrow's possible market decline.

Net Asset Value= 3293.05 (Cash and Assets) , +$26.03 from Yesterday

Cash buying power= $1244.10

Trade Executions I Made Today

ARR-sell, 120 shares, 6.97

EDZ- buy, 21 shares, 27.96

I sold ARR to minimize losses in the coming market decline. I hold some ARR for the high dividends. I am actually ahead in ARR because the dividends I have received from ARR this past year exceed loss in value easily. EDZ I am holding as a way to short the market.

MARKET ANALYSIS FOR TOMORROW

DOW

*Today the Dow (DJIA) rallied until around 9:30 pacific time, from then it pulled back. I expect it to pullback more for tomorrow.

*Chart Indicators : W%R- Crossed downward ( may indicate waiting to buy/ sell) , MACD- Sideways (Hold) , RSI – Failed to cross (hold/ sell)

The indicators appear to be showing resistance, and signal possible downturn for tomorrow. I am betting on market coming down.

The DOW seemed to have hit a resistance that I did not pick up on yesterday. It cannot break the 44 day moving average (circled in green), another reason why I think it will be coming down tomorrow. I mistakenly thought the 50 day would be the resistance. I adjusted quickly, but could have had a better entry into EDZ.

THE FUTURES

NEWS

*News this afternoon are rather negative, which signals a possible sell off early morning. This is good news if you are shorting the market.

GENERAL INFORMATION

I am looking to pick up EHI, a diversified bond fund which pays monthly dividends around 9 annually.

Will pick up ARR, AGNC, and AT on a hard dip. Even after tomorrow, I do not feel they will be in position to buy, so not sure of an entry price for any of them yet. Will speculate tomorrow and see where the momentum is heading.

Happy Trading! From OC, CA.
H2o