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Nasdaq hit a 10-year intraday high on Fed chief’s view – RSI keeps striving up April 27, 2011

Posted by Marlowe Cassetti in PDP.
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image U.S. stocks extended gains on Wednesday, with the S&P and the Nasdaq near session highs after the Federal Reserve signaled it was willing to maintain its extensive support for the U.S. economy and corporate earnings continued to impress.

The Fed’s policy-setting Federal Open Market Committee said in a statement it intends to complete its $600 billion bond buying program in June as scheduled. (commentary & photo courtesy of Reuters)

The RSI portfolio dropped early today and then strived back to a nice profit led by 1+% gainers in Spain, Taiwan, 2X S&P500 and short US T-Bonds ETFs. On the negative side, Turkey and O&G equip/services had losses. The position in PDP sits at less than $1 below its alert level for a trailing stop, so maybe in the next few days we will take +2.0R profits in this ETF. I’m looking to build some additional cash reserves in the portfolio in order to take advantage of the next RSI buy signals.

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On the topic of portfolio/trading strategy, I have been experimenting with some different techniques. Instead of a “bang-bang” approach of a stop loss of -1R and starting a trailing profit stop at +2.0R, I’m looking at moving the stop loss up to 0.0R when the profit level moves above the +1R level and so forth. I see some useful, but preliminary signs of merit. I’ll report when I flesh out this technique.

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The RSi system is down tonight. If any new buy signal emerges, I’ll report on it tomorrow.

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