Thursday, November 14, 2013

11/14/2013 Sector update

The sector model flipped from XLB to XLK.

I've sold yesterday's XLB position for a new position in XLK, pocketing the 0.99% favorable gap.


  1. Let's see if I follow the trade-around sequence correctly. Yesterday at the open you sold XLB for XLK until just before the close where your model instructed you to swap back to XLB. That was a +0.25% advantage (holding XLK instead of XLB from open to close). Today at the open you sold XLB and now holding XLK? I don't believe you can count your chickens before they're hatched on the latest swap just yet...

  2. Actually it was a rare double whipsaw. There are two rules:

    1) Trade before the close on real time data
    2) Trade after the open on end of day data if there is a favorable gap

    Yesterday it opened in XLK but switched to XLB right before the close.

    But end of day data had whipsawed back to XLK.

    I had a .99% favorable gap and made the trade.

    It's POSSIBLE, given those rules, to switch back before the close.

    Since the average holding period is 21 trading days, these whipsaws should settle down soon.

  3. TraderD -- I have some friends who can't get the notifications to work. Are you getting notifications by email?

  4. Got it. So you're measuring the .99% favorable gap as the XLB (yesterday close to today's open) minus XLK (yesterday close to today's open).

    Re email notifications, I am not getting them, but would like to!

  5. My friend is trying to help me figure out why the email is not working. Quite annoying.

    Yes, that .99% is the profit I made that will NOT be recorded on the Sector Model numbers. I don't count those favorable gaps on my posts. But I do enjoy them :-)

  6. GOT IT! I've added the "Follow By Email" gadget in the top right corner of the blog.

    Geeze. Should have been a basic feature, instead of an add on...