Friday, June 30, 2006


Apparently the markets think the Fed's statement is bullish. I was short and suffered a big loss. Mainly due to being short individual stocks. If I had traded strictly according to the model I would have lost only about 25% of what I did. If you reversed to long when the stop was hit you would be flat for the day. The stop is at a 1.25% loss and the market rose another 1.25% after that. It makes sense I think to reverse at the stop when the next day's forecast is for a change of trend.

I closed all positions and went long... too late in the day though. The model is now forecasting up (like that's hard to do LOL).

From now on I am trading only QQQQ in position trades and now and then in day trades to improve my position. I may also do trades in individual stocks if there is a good reason to do so. But I won't use them to capture the market direction. I may use other ETFs like HHH too. Of course I also invest but I follow strict risk control there too in terms of position sizes.

Let's see if this improves my net worth. This month will be very bad. If I am lucky I will stay just over the $300k mark.

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