For USA Members following the Market Direction Portfolio I am restructuring the various trade tables for all my trades including the Market Direction Portfolio. I have also hired an assistant who is working to get all the trades up-to-date and then maintain them up to the minute. To that end, this is the first market direction portfolio update. This first update looks at all the trades done in January 2015.
The month of January returned 11.5%. January was a very busy month for the Market Direction Portfolio. After steady and easy gains in 2014, January marked the first month of volatility that warned investors that 2015 was going to be a very different year from the past 4 years. Gains had been easy in those 4 prior years. In 2015 it became obvious in January with trades such as those done on January 9, January 13, January 28 and January 30, managing the portfolio would require more use of stop-losses and more focus on protection of capital. The loss taken on Jan 26 of $5,380.00 was the first major loss to the portfolio in 4 years.
That loss was a clear signal that 2015 was going to be different. A number of investors emailed in January concerned about the increase in the number of trades being done and the use of stop-losses. They had been use to easy gains where a purchase of UDOW could be held for days and weeks for easy profits. January proved that holding a Ultra ETF for a movement either up or down for more than a a day or two without a stop-loss was going to be a disaster. January was the first month in 4 years where the portfolio was often stopped out daily and sometimes stopped out more than once in a day.
It was also the first month in 4 years where intraday trades in the portfolio sometimes ended up with 2 or more trades. January 9 was the first signal that there was a change underway in the underlying market direction. On January 9 there were 6 buy and 5 sells all in one day. The profit was exceptional, but it was just one day. It was the kind of profit that usually took a week to earn prior to January 2015. It was after that day that I wrote in the market direction outlook that 2015 was shaping up to be a different year. I indicated that at some point in 2015 we may look back on the pullback of October 2014 as the first warning that a new bear market might be developing. We have yet to see that develop but it has been a wild year.
All the above trades are outlined in the January 2015 trade table.. Members can review all the trades and all the articles associated with January’s trades through this link.
The market direction portfolio is designed to profit from the trend in the market direction whether it is up, down or sideways through using the Ultra Pro and Short 3X and 2X ETFs.
Market Direction Portfolio Trade Update for January 2015
FullyInformed USA Members can review all the January trades done in the Market Direction Portfolio directly through this link or they can sign in to the full site here. Non-members can join here or read about the benefits of a membership.
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.
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