While the ETF model continues to have a bearish tilt on banks, we can still eliminate our market risk and gain on stock selection by BUYING Citigroup (C) and Bank of American (BAC) while have a position in FAZ or shorting FAS.
Another interesting idea is you can buy MSFT, INTC and HPQ and short the Cloud Computing companies CRM and VMW and search engines GOOG and BIDU as suggested by the model. Below are some great trade ideas and none of them are obscure. You have over 3,400 stock ideas to pick from. It’s like a buffet. Just go ahead and download the whole Excel file from yesterday.
Here is the ETF Model output for tomorrow.
Not much has changed. You can download the Excel file here: DailyModelScoreFile_20110519
Good morning traders. Yesterday I said I was bearish on financials but wanted to see the XLF hit 16.00 – 16.02. I didn’t have to wait long! I went short FAS but also went long JPM to hedge. I did this because this is options expiry week and on a longer term chart I have a similar downward channel with the top line at about 16.20. Figure it could still touch that one. I finally found out what I was doing wrong with trying to post charts here. As you can see the XLF bounced right off my channel line yesterday. Thanks for your help zsun.
I probably should have bought BAC in stead of JPM as zsun suggested. Hopefully it won’t matter much as this is probably a short term trade( 1 -7 days).
Yes. I expect it’s short term. Glad the models are being used by traders like you. Hopefully more people will find them useful as a guide.
Market is looking to roll over into close.
Hey Dsavill,
Sorry I wasn’t around on Friday. Please note the change our site’s template and the on-going changes in the next few weeks. Thanks.
I hope all of the “lurkers” will step up and start posting. The more ideas we can share the better chance to make money. zSun has been working hard on these charts and I can attest they have helped me make $$$. There is a lot of potential in this site, but only if more people join in on the board.
Really appreciate the comment Brownie54. We updated to the latest WordPress version so it might take a few days for people to get used to the new format. But anything people can do to spread the word will help the site for sure.