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Friday’s upmove was confusing to me. I’m starting to wonder a few things. The first is that my signals may have been off for 1 week since I was looking for a lower weekly close in the COMPX. What I was looking for was a relief of the oversold condition the market was in. We got that upmove, then last week it continued. However, on a week over week basis the SPX DID close lower week over week. This upcoming week will be filled with econ data and its going to provide a lot more information as to what direction the market is going to take going into August and September. If price continues upward, the market trend *may* be turning. I personally and strongly doubt this is going to be the ultimate outcome though, but what I think personally means about as much as a bag of onion rings right now and price action is king. Something will likely come out in the news, as always, that will be the excuse of the news.

Will it be earnings? Will it be Iran? Will it be economic data? Will it be oil?

Even though this week didn’t go exactly as I planned I managed to have a very good one trading the indexes due to position sizing. I was heavy long when I needed to be, and heavy short when I needed to be, and trimmed back considerably at the right moments. Hopefully this streak continues.

My cut of RTK was horrible. I literally sold it the day before its 8%+ move. According to this new strategy I was trying when I bought RTK typically produces gains of 20%+ range. So far RTK hasn’t hit that price performance yet, so there may be considerable upside left in the trade and RTK might be making a run to its recent highs. Just to rub it in even more, RTK shows up at the top of many of my screens as of Friday’s close.

The other selection off that strategy was PWAV. The wireless sector is moving lately and PWAV is there. I got shaken out of PWAV as well this week and it started acting correctly based on Friday’s price movement.

Whenever I try out a new strategy its hard to sit through short term hits because you never know if its going to blow up in your face. Bottom line is that I might be getting back into these names. LLNW still seems to be in play.

I got shaken out also because I thought the general market would selloff and had that tugging on my trading fingers.

Currently I’m short in a trimmed back state, in case, my feelings are incorrect. I still hold GLD and GG calls looking for an oversold bounce this week. Both gold and oil stocks are oversold, which if they bounce will help the general market selloff.

I should pat myself on the back again for calling the Biotech move. This chart spells out the timeline click the link below to see. The first three comments are linkable to the post.
bbhchart

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