The use of logical stop’s produces a natural reversal in the portfolio positioning. Over the past week, profitable bullish trades were stopped out. Potential new bullish trades usually did not execute based upon lower opens but at the same time short trades were executed. This created a natural change from being predominantly long to being predominantly short in the portfolio. At one time, scanning for new trades was heavily directed toward long positions based upon the market indexes trading above the T-line. Adding a few short positions to the portfolio was viable based upon the markets be in overbought.
February 2nd Daily Market Comments
The use of logical stop’s produces a natural reversal in the portfolio positioning. Over the past week, profitable bullish trades were stopped out. Potential new bullish trades usually did not execute based upon lower opens but at the same time short trades were executed. This created a natural change from being predominantly long to being predominantly short in the portfolio. At one time, scanning for new trades was heavily directed toward long positions based upon the market indexes trading above the T-line. Adding a few short positions to the portfolio was viable based upon the markets be in overbought.