For USA Members following the Market Direction Portfolio here is the latest strategy update. With high volatility continuing it is necessary to review the market direction portfolio and institute a new change to the stop-loss being used. As well there are changes to the passive Market Direction Portfolio strategy in use.
Worst Volatility In 40 Years
This evening on CNBC, well-known investor Dennis Gartman said that the volatility at present is unlike anything he has seen in the last 40 years. The volatility during the last bear market was enormous but it was steady. We did not have whipsaws day after day. This is now the second month of high volatility.
VIX Index Feb 4 2015 – 5 minute chart
If you look at the volume from today you can see that as the market was rising in the later afternoon, investors were buying the UDOW. Then suddenly when it turned and collapsed on the news out of Greece, investors were dumping UDOW to get out at any price. Luckily this is an ETF tied to the DOW market action so the price cannot fluctuate widely unless the Dow is whipsawing widely.
VIX Index index for Feb 4 2015
The high volatility has meant a change in the market direction portfolio and a change to the passive Market Direction Portfolio stop-loss strategy.
Market Direction Portfolio Strategy Update for Feb 4 2015
FullyInformed USA Members can review the latest Market Direction Portfolio daily strategy update directly through this link or they can sign in to the full site here. Non-members can join here.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
Internal Market Direction Links
Understanding The Market Direction Portfolio – Good Place To Start
Market Direction Portfolio Articles Listing
Market Direction Portfolio Trades for 2015
Market Direction Portfolio Trades for 2014
Market Direction Portfolio Trades for 2013
Market Direction Portfolio Trades for 2012
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals