Thursday, May 17, 2018

5/17/2018 Potential Sector Trade

Apologies for the long silence.  One of the problems of a longer holding model is that sometimes there is nothing to say.

In my case, there were no changes to the investments, but a lot of changes in my day job and life in general.

I'm still in a bit of flux on the personal level, but I will post every potential trade ahead of time.  Ultimately, I'm planning an open portfolio with all trades stated before they happen.

Tomorrow the Sector Model faces a potential trade of selling XLI and buying XLV.  The only thing to prevent such a trade would be a negative gap.

A positive gap would be XLI up in price more than XLV (or down in price less). So if XLI is down 5% but XLV is down 5.1%, that would be a "positive gap" between them.  Conversely, if XLV were up 6% but XLI up 5%, that would be a "negative gap" between them.  In the first case we would have a net gain of 0.1%, and in the second case a net loss of 1%.

Good trading tomorrow, and next month the Full Model will be due for a trade.

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