Bookkeeping: Cutting Back Perfect World (PWRD) on Break of Support
By Trader Mark
20 November 2009 @ 11:08 am EDT
Speaking of a narrowing of the market, about 4 weeks ago many of our positions began breaking below key moving averages ... we mechanically began culling them and moving into cash. Then within a week the large caps broke down (just for a week mind you) and the S&P 500 broke the 50 day moving average - right before Halloween. We also had 6 intraday reversals in a 2 week period. 3, 5, 7 years ago this would of led to a larger move down. Instead we did a 180 degree turn at the beginning of November and went straight up in now taken for granted, rocket ship style. Head shaking to say the least.
Copyright The Fund My Mutual Fund. All rights reserved.