Stocks climb on earnings – "We have met the enemy… and he is us" April 28, 2010
Posted by Marlowe Cassetti in GDX.trackback
Investors gave stocks a rebound after reassuring words from the Federal Reserve and another batch of upbeat earnings reports.
The Dow Jones industrials rose 53 points Wednesday, making back a quarter of the 213 they lost the previous day.
Investors were able to shake off Standard & Poor’s downgrade of Spain’s debt, the third European country in two days to have its rating lowered. Instead, they focused on the domestic economy.
The Dow rose 53.28, or 0.5 percent, to 11,045.27. The Standard & Poor’s 500 index rose 7.65, or 0.7 percent, to 1,191.36, while the Nasdaq composite index rose 0.26, or 0.01 percent, to 2,471.73. (market commentary & photo courtesy of AP)
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To quote the famous Pogo,
"We have met the enemy… and he is us"
Why do I bring this up? In the Manned Space Program, after every flight, we managers and engineers would pour over the telemetry records and look for anomalies. Stuff that didn’t go according to plan. We had Post Flight Analysis Teams. I had an active role working on the teams, and on a couple of flights I lead a team. I have been doing my own Post Flight Analysis by evaluating RSI’s picks and I discovered several lucrative trades that I did not take. I have poured over my personal records and tried to understand why I chose to sidestep those trades. It beats me why I didn’t follow my system. It was fear I can only guess. In addition to choosing not to take a trade, I also discovered I didn’t stick to placing and updating both my protective and profit target stops. I can attribute this problem to pure complacency. These were two major discipline problems that I need to and will correct. Do you see now why I quoted Pogo?
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Here is a chart of GDX which is one of the holdings in the RSI portfolio. It has been performing well lately, probably because of the global market jitters. It appears that GDX could extend its upward climb above and beyond the green trendline. I like the fact that the relative performance trend, the violet line, is maintaining its upward bias.
There are no new picks today. Catch you later.
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