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Cotton was on fire today! February 17, 2011

Posted by Marlowe Cassetti in BAL.
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While the market was modestly higher, the RSI portfolio surged even higher with iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL) surging +1.2R. A stunning gain that propelled it well beyond it +2R trigger level. Before the end of the day the trailing stop was hit for an overall profit of +3.2R. This is a good example of the value of the trailing stop letting profits run to higher levels. Couple this with another +2R gain in BAL earlier this month and in this one fund, a +5.3R gain was achieved. As of the market close today, one half of RSI positions sit above the 1.5R level and none are below the –0.5R level. Remember, BAL was purchased on Feb. 7th, just a few days ago. I cannot get too overconfident in this recent performance, because this is only one day. Remember the old adage – Don’t confuse brains with a Bull Market.

And RSI continues to remain silent and not issue any buy recommendations. So we have to sit back and wait for another buy signal to happen. In the mean time, our profits keep running.

Catch you later.

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