Michael On Everything Else

Tighten Those Trailing Stops

Two stories I’ve read in the past couple of days have prompted me to check and tighten trailing stops on some investments and outright eject from others (with a small profit rather than at a loss). These aren’t panicked sells as much as capital-protection moves. Because I’m no expert and I don’t maintain daily research on the markets, I invest relatively conservatively.

Besides, the market has had a great run up from 2009-10 and what goes up, must come down.

The first one is a bit dramatic but the author’s point is salient:


Pessimists warn that unless there is a batch of irrefutably good data from China over the next two or three months, the sell-off could become self-fulfilling and quickly metamorphose into the next global crisis.

I’ve been long in energy stocks for a couple years and have done pretty well by that strategy. But now:

Brent oil prices will continue to slide after breaking through a key technical level at $34.40, RBS claimed, with a “bear flag” and “Fibonacci” signals pointing to a floor of $16, a level last seen after the East Asia crisis in 1999. The bank said a paralysed OPEC seems incapable of responding to a deepening slowdown in Asia, now the swing region for global oil demand.

And then there was this:


Under its new and cynically misnamed “HomeReady” program, borrowers with subprime credit don’t need to show that they have enough income to qualify for the mortgage they’re after — they simply have to show that all the people residing in their household put together have enough income to qualify for that mortgage. We’re not talking just about husbands and wives here, but any group of people who happen to share a roof and a mailing address. And some non-residents can be added, too, such as your parents.

…because everyone deserves their very own McMansion.

Standard caveat: Don’t be a douche. I’m not giving you financial advice so don’t sue me if your potfolio tanks.