The charts allow us to take emotion out of the process in investing. You cannot underestimate what kind of valuable advantage that is. You dont pull your hair out, bang your head against the wall, or feel nervous about carrying sharp objects. Usually. So yes we've been standing here like Linus from Charlie Brown, talking about the Great Pumpkin that never comes. Of course, our Great Pumpkin is the stock market dropping. So far.
In any event, we played the ticker SKF a couple of weeks ago. SKF is a stock that does well when the banking sector goes booty up (technical term). Its 2x the negative of the Dow Jones U.S. Financial Index. Unfortunately, buying this stock requires a quick hitting move and is not for the faint of heart. Well its moved alright in these 2 weeks......but against us. Now the "tea leaves" (technical term for our charts), have also moved against us. That means SELL.
So SELL SKF at a loss. But keep the short of Goldman Sachs (ticker: GS) on, as we have had a nice drop prior to today, the last few days. Got it? Good. We of course will be back with more updates as we see them unfold
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