Escolar Documentos
Profissional Documentos
Cultura Documentos
Dan Shy
dan.shy@gmail.com
IN FOCUS:
Dividend Investing Outlook
Trading Thoughts
Trading Outlook:
Note: By way of reminder, since the Model Portfolio has only $9,205.00 in the Commodity Futures portion of the portfolio, there will only be 'brief day trades' at this stage of the game for Commodity Futures trading in order to escape the risk of overleveraged gap opens in the commodity futures markets. This is an attempt to demonstrate how account size relates to trading style. As the 'trading sister' reaches $30,000 I will graduate the account into 'swing-trading' and demonstrate how I would go about doing this. The Forex account has $51.08 and is considered a microforex account for the purposes of the model portfolio.
If we break below 1210 on the S&P 500 Index? As I have stated for a few weeks now, the Model Portfolio for Aileron Market Balance I simply too small to risk opening up an index hedge. Now what of other accounts that are larger in size? For any larger account, I might think about putting on an index hedge with a clear break below the 1210 area of support. But it would be 'weighted' on the small side. If you're new, when we talk about a 'small weight' to our hedging, we're speaking of a hedge 1 that is not large in size. A hedge can be a large, over-weight hedge, or very small.
1
A Hedge is an instrument that one would buy as insurance against another position that one has primary interest in profiting from. It's purpose is to protect the larger position, or account, and can be exited when that insurance becomes profitable, or is no longer needed.
On the smaller time frames that I watch for commodity futures, namely the one hour chart, and the 10 minute chart, we ended trading Friday with a bit of a rally March Sugar One Hour Chart
Forex Markets
Forex Market #1 EUR/USD: As you can see from the trades in the last section, on the smaller time frames we had a few 'pop's higher on the EUR/USD last week. But by the end of the week, we could not break above resistance of the highs on the daily chart, and in the remaining hours, we settled lower. as well as March Sugar 10 Minute Chart Forex has begun trading for the week, and at the time of this writing, we've begun to head lower. I see two trades possible here, both in the same direction. On the smaller time frames trading to the long side, exactly as I did last week. Wait for an area of 'congestion', or 'channeling' to develop. Then buy breaks up out of any such channeling. For an account the size of A.M.B.'s Micro-Forex account, this means a position size of 260 units, or a 0.26 lot. That's the first 'trade' or 'scenario'.
As follows is the state and balances of the Model Portfolio as of this Sunday evening S&P 500 Since Newsletter Launch on November 13, 2011: -3.5 % Investing Account Balance: $4,011.34 Return / Yield up +0.2835 % from inception 4 shares of PEP (DRIP on Yield is 3.21 % )
4 shares at $63.31 on 11/15/2011 w/ $5.01 Commissions
We one commodity futures trade. That long Sugar that I mentioned at the beginning of the week. Remember that? Before I became all enamored with
I had a quite a few Micro Forex trades last week that would translate down into AMB's Model Portfolio. Long 260 EUR/USD from 1.3195(6) on 12/12/2011. Exited 208 @ 1.3219(9) on 12/13/2011 for 24 pips PROFIT $0.48 Exited 52 at 1.3197(9) on 12/13/2011 for 1 pip PROFIT $0.01 Short 260 EUR/USD from 1.2983(7) on 12/14/2011. Exited 260 @ 1.2987(5) on 12/14/2011 for 3.8 pips PROFIT $0.11 Long 260 EUR/USD from 12/14/2011 1.2991(5) on
Exited 260 @ 1.2984(9) on 12/14/2011 for 6.6 pips LOSS $0.19 Short 260 EUR/USD from 12/14/2011 1.2983(0) on
Exited 260 @ 1.2987(0) on 12/14/2011 for 4 pips LOSS $0.12 Long 260 EUR/USD from 1.2996(7) on
$806.70 of this cash reserved for 'burn rate / maneuvering' capital ( 80.53 %) $120.00 of this cash reserved for CD Ladder creation ( 12 % ) - One $10.00 One Year CD purchased on 11/21/2010 at 0.60% $20.00 of this cash reserved for the first side-pocket purchase ( 2 % ) $20.00 of this cash I reserve for the second sidepocket purchase ( 2 % ) $35.00 of this cash I reserve for the hedging account ( 3.5 % )
$500.00 for Emergency Savings Getting Paid Fund: $0.00 Redistribution to Other 'Sisters': $0.00 Total Portfolio Balance: $15,649.84 - Total Inception to Date Return: +4.332 % from inception )