DELAYED BUY – iShares Dow Jones US Home Construction (ITB) December 23, 2009
Posted by Marlowe Cassetti in ITB.trackback
Stocks ended an erratic session with a slender gain Wednesday as rising commodities prices offset disappointment over an unexpected drop in home sales.
![[abreastwallstre]](http://s.wsj.net/public/resources/images/OB-FD185_abreas_D_20091220154111.jpg)
Gains in commodities drove the shares of energy and materials-producing companies higher, lending support to the overall stock market. Gold, oil and other commodities rose as the dollar dropped.
The dollar snapped a four-day winning streak as the latest economic data reinforced investors’ belief that the recovery will be slow. (commentary courtesy of AP)
My stock watch generated a delayed buy of iShares Dow Jones US Home Construction (ITB). What do I mean by a "delayed buy"? Actually, the RSI operational system generated a buy of ITB months ago, July 30, 2009 to be exact. Since I didn’t have this version of RSI operational in late July, I didn’t have the opportunity to buy it at that time. However, since it hadn’t gone anywhere since the recommendation I decided to monitor it for a breakout. The trigger went off today and I bought at a price of $12.14. No, this is not the RSI system methodology but rather a wild hair. Somewhere there is a rationale but I’ll spare you the excuses, I mean details.
Anyhow, although ITB has gone nowhere it does look as if it is poised to move upward. We shall see.
FYI – My stop loss level is set at $0.82 below my fill price.
As I mentioned in my blog several weeks ago concerning “holding position” funds, I sold the appropriate number of shares to cover the cost of my anticipated purchase and then seconds later bought ITB. I was pleased to have made this maneuver quite seamlessly and it is now in my trading playbook.
Catch you later after the market closes.
Comments»
No comments yet — be the first.