An outstanding ride – Set stops for First Trust Natural Gas Index (FCG) & PowerShares Commodity Index Tracking (DBC) February 28, 2011
Posted by Marlowe Cassetti in BAL, DBC, FCG, TAN.trackback
Last Friday the markets closed with small gains, but for the week the markets were down. However, Friday was one of the best days yet for the RSI portfolio. Thus today I set trailing stops for the two positions FCG & DBC. A quick review .. when a position reaches the +2.0R level an order to set a trailing stop 0.3R below the high achieved from that point forward is initiated. In that way, profits are allowed to run within the 0.3R band. On the losing side VNM and TBF are down -0.63R and -0.59R respectively to cause me to set alerts at the -1.0R levels for a sell. As you can see, knowing your R number (dollar risk) is important to the RSI methodology.
RSI’s last two picks were BAL & TAN and I recommend that one should wait for a pullback. BAL did pullback and has made a strong recovery while TAN has continued to fall. We have made some outstanding profits with our two BAL trades. The question … Is there any more upside potential available? I will contemplate this question over the next few days.
Today RSI remains silent; no new picks.
Catch you later.
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