Took Profits on our Oil Sector Holdings on Tuesday

Volatility has been trending down recently. Moreover, correlations have also been lessening. This helps our indicators function better.

I took profits in our oil sector holding Tuesday morning based on the following analysis. We were holding  xle, cog, cvx, xom and glng.This proved to be very timely as prices dropped dramtically on Wednesday.

My sell decision was based on two great indicators:

Bollinger Bands
Effective Volume

(Click on chart for easier viewing)

Sell signal on Tuesday morning

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Understanding the Daily Market Snapshot

01/10/2012

Daily Market Snapshot



The market is gaining strength.



I have produced a video titled "Understanding the Daily Market Snapshot", as well as an accompanying pdf slide show. The links to both are located on the GWM website under the main menu [Client] tab.

I believe all investors will benefit a great deal by learning about this valuable tool. You can view this 12 1/2 minute video now buy clicking on the Daily Market Snapshot graphic on the right.  If you choose to view it at a later time visit the GWM website.



Understanding the Daily Market Snapshot






Daily Market Snapshot 01 09 2012

Daily Market Snapshot

The Market is strong.

I recommend that you click on the following link to view an updated "Understanding the Daily Market Snapshot" pdf slide presentation. It is brief and, I believe, worthwhile.

http://www.gerritzwealthmanagement.com/wp-content/uploads/2012/01/Daily-Market-Snapshot-Slide-show-2.pdf

The Risk-On trade is back in vogue.

Our recently added positions in fertilizer stocks (CF, MOS ) and energy stocks (cog, cvx,xom,glng, xle) are beginning to come on strong.

Other areas that are doing well for us are the regional banks (kre) and semi-conductors (soxx).

Additionally, our shift away from defensive issues has been the right move. I will continue to shed some of these weak sisters.

Video Spotlight - GWM Website New Interactive Chart

Click the Video Spotlight Icon to view a brief demo video on the newly added interactive chart on the GWM Website.

The new interactive chart and Barchart.com link is a fast and convenient way to get a handle on the investments held in your accounts.


Interactive Chart



Market Snapshot 01 04 2012

Daily Market Snapshot



Still positive



Market Direction Model

Still positive

 



Risk On Day

  Special Comments:

Defensive sectors were under pressure on Wednesday.

Surprisingly, the commodities and industrial sectors have been showing strength.

I will adjust the Sector Rotation & Inflation Hedges folios, adding in some risk on style investments

Market Snapshot 01 03 2012

Gaining strength

We had a nice and strong opening day for the new year.

Latest row is all green

The MDM is looking good.

Technical Analysis (TA)

The S&P 500 closed above its 200 DMA.

We now have a series of higher highs and higher lows (Uptrend).

Inverse Head and Shoulders formation (Bullish pattern)

On the negative side, there was not much follow through
after the morning gap higher.

Special comments:

Our gold miners ETF performed very well yesterday. My timing could not have been better; we caught the move off the bottom almost perfectly.

Utilities were negative on Tuesday as the sentiment had turned to risk on. Utilities are priced to perfection. I will reduce our position a little.

I will buy a dip back to the 200 day moving average.

I will be taking an inverse position in small caps as a hedge. This is based on EV analysis (large player are not accumulating shares of IWM, small cap ETF).

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.



IMPORTANT! Folio Institutional 2011 Tax Info Schedule

IMPORTANT!

(Click on text for easier viewing)