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The Portfolio rises 7.5%
Welcome to this news letter. Things are moving and changing so quickly here is another quick update on the Aussie markt, the big news being the commodities rally seems to be happening.
Well what an outstanding week in the market. The doomsayers getting it wrong and the market resuming the trend. As I always say its impossible to pick the market, best to go with probability. The trend is up and until that reverses with any conviction the best thing to do is to stay long and not over trade, like so many traders do. A lot of people would have panicked and sold out of this market recently having no real plan or method, falling victim to stress and worry. To repeat myself again, learning trend trading methodology and systems is relatively "easy" but the psychology of trading is not. The secret, if there is one is to have a plan and trade a method WITHIN your personal parameters, then it can be "easy".
Anyway, enough philosophy and methodology talk , lets look at the charts.
The market had an outstanding week closing up on the highs with strong volume. Probability would suggest a pause or a pullback but this is a very strong market and anything could happen.
Resource stocks out perform, the shift to this sector seems to be gathering momentum with quite a number of stocks breaking to new highs.
The CRB (commodities index representing a basket of commodities) continues to rise sharply.
The XAO with the commodities now on board our market, starts to outperform the US SP500 rising above the previous high, where the US has not.
The Portfolio:
The portfolio rose 6% this week, 7.5% in fact if you calculate the rise in stocks only and exclude the cash on hand. It went from 97500 to 103500. One week, a month or even a quarter does not make a years trading and verify the system. However, the market rose 3.3 % this week, and a good system should out perform the index by 2 to 1 or more, so it is nice to see it not misbehaving.
After a shaky start from the big loss on NEN the portfolio has recovered well. From a personal perspective NEN was not a pleasant experience, big losses never are, but what a great example and teaching tool of how sticking to the system can quickly turn fortunes around.
After Monday the portfolio should be "fully loaded" or ALL IN for the poker players out there. Go to the portfolio page on the website for more details of what I am buying , adding to or selling.
Have a great weekend
Peter
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