Heading into last Friday any momentum trader that was betting the bull like myself was extensively grateful for using tight stop loss orders.
I was 100% vested on Friday and within three hours was 100% cash. After calculating the damage I realized my portfolio had bled just over 1% compared to the S&P 500’s 3%. In fact, without those stop loss orders my portfolio would be down a staggering 7% right now – that is just ugly.
With that said I am still 100% cash and am only looking into fertilizer stocks, plays on coal and other ores, and oil related picks for momentum trades. They are the only trends with bullish momentum – I am not involved in shorting of any kind.
Starting tonight with the S&P 500 you will see the brutal picture developing. For all of you investors who are long out there, god bless your souls and hopefully you are well diversified.
Only one trade I am looking at for now and it is a play on iron ore. Momentum trade details below.
And STTG reader Rick emailed me today letting me know he bought JRCC today using my momentum trading technique – a 11% return in one day.Â
