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Position update

August 19, 2013

A)     SPDR Dow Jones Industrial Average (DIA)

Last week, I set out the entry criterion for a short position in DIA of a close below $153.33. According to my data source (CSI’s Unfair Advantage – a good source for Metastock compatible data), DIA closed at $153.32 on Wednesday 14 August.

DIA190813

A short position for my trading record is opened at $153.32, which has a 1.8% profit so far. The weekly RSI and MACD divergences are rare events with reliable medium term consequences. Therefore I will trade it here on a medium term basis, keeping the stop loss above the high for now.

You may want to take some and stop loss to break even for money management and your trading style.

B)    PPG Industries

Last week, I set out the entry criterion for a short position in PPG Industries (PPG) v SPDR Materials (XLB) of a close below the 26 July low of 3.86565 (blue arrow). On Thursday 15 August this was met.

PPGXLB190813
A short position in PPG v XLB is opened at 3.8649, the closing ratio value on 15 August. The stop loss is a new high above 3.97597 from 01 August.

You can see that on Friday there was a slight rebound and the ratio has not conclusively broken down yet but I’ll stick with what I said for my trading record. You can wait for a more conclusive breakdown below the almost equal lows of 16 July, 01 August and 15 August to enter a trade.

C)     Agnico Eagle Mines

On 08 July and then again on 29 July, I showed the set for a long position in Agnico Eagle Mines (AEM) v S&P 500 Index. Last week, I noted the improved commonality for gold stocks against the market. The entry criteria for this pair were met on Friday by a weekly close of the RSI above the intervening high, with the daily RSI above 30.

AEMSPX190813

A long position in this pair is therefore opened. This signal came a week later than for some gold stock relative charts, so didn’t get the benefit of last week’s action.

The long position is opened at 0.0187217 (AEM = $31.00, SPX = 1,655.83)
The stop loss is a new low below 06 August of 0.014982. That is 20.0% lower, wider than I would have liked. It does show a relative turn around though and a new relative high since mid June.

D)     XAU Index

On 01 July, I showed the entry set up for a long position in the Philadelphia Gold & Silver Index (XAU). On 29 July, I showed this was fulfilled and a long position was opened at 94.82. At 109.27, this position has a gain of 15.2%.

I effectively have two Gold stock v the market positions now, (long XAU, short DAI, long AEM v SPX). I will take the profit in this long XAU position to remove this duplication. XAU is closed at 109.27.

E)    Bank of America (BAC) v Union Pacific (UNP)

Shown last week, this set up consolidates below its breakout level.

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