After a massive run of winners since December 2013, we do have some positions that are down. We see absolutely no reason to exit any of them at this point, though, holding with plenty of time remaining.
While we’re watching new trade opportunities, we have to be very careful here because of where the market sits, historically. After bouncing off overbought RSI, MFI and MACD, we’re beginning to see signs of failure at historic top.
If we break below the 50-day, we could spiral back to the 200-day moving average 600 points lower.
Hopefully that won’t happen.
Again, we hold all open positions in Forgotten Profits. We’ve had an amazing win streak since December 2013. And we have our losers in recent weeks.
If you’re interested in trading potential downside to the 200-day moving average, you should consider buying to open the DIA November 2014 169 put up to $3.40.