Wednesday, December 5, 2012

Trades: Buy EPI, Buy FXI, Buy F

I have three units of cash that I wanted to invest in three stocks/ETFs that I can hold for a reasonable long term. Long term is a relative word here - I will not be looking at 3 month charts here like I used to for trend trading, but more like 2 year charts with the focus on 100 DEMA and 200 DEMA.

They are essentially part of the Exit Strategy #4. These stocks will be benchmarked with 100 DEMA. All of these stocks show signs of turning their 100 DEMA around. The charts below provide evidence. The charts are 2 year charts to keep attention on long term trends.

First - F - Ford Motors
I am watching the red line (100 DEMA), the fact that its slope is upwards and also the fact that it is going to cross the green line (200DEMA). Exit point is when price is decisively below the 100 DEMA.


Second - FXI - China
Same situation as F above. Upward sloping 100 DEMA, about to cross through 200 DEMA. Exit point is 100 DEMA.


Lastly, EPI - India
Same as the two above. Benchmarking on Exit Strategy #4, 100 DEMA.


I am now fully invested in the markets. No cash left. Of course, many of these bets under Exit Strategy #3 and #4 will hit their triggers and will be sold - so then I will have flexibility again for new investments. For the moment though, I am fully tapped out.

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