Author: Jesse Barkasy
Model: Trend Following
Disclosure: None
Jesse Barkasy manages Covestor’s Trend Following model which uses trend following and chart reading techniques. Current top positions include Sky-mobi Ltd (ADR) (NASDAQ: MOBI). Jesse had this to say about March’s stock market rally:
The market’s rally on low volume continued, and as stated, I buy breakouts. However, the low volume made me suspicious and I did not hold on long enough to some positions for fear of a sharp correction.
I am still leaning toward believing the market will have a sharp correction, but the Federal Reserve’s stance is changing the normal correction cycle a bit. Any small corrections seem to be followed by a low volume rise. Even in the face of the Japan disaster and the unrest in the Middle East, the market held! That is the character of the market as I write this note (on 4/6/11), however this can change quickly.
I will adjust as necessary and look for any clues that this market is ready to rest, correct or turn downward. If a few days after I write this, however, the trend is strong and I see high volume breakouts, I will buy because that is the strategy.
I would like to also send my thoughts and prayers to the people of Japan.
Jesse Barkasy
