Strategies

I expect a market pullback

by Ronald Guerrini|Published February 15, 2012

Author: Ronald Guerrini

Covestor model: Breakouts and Reversals

This year has started well for equities and for my Breakouts and Reversals model portfolio, which returned 5.9% for the month vs. the S&P 500’s 4.4%.

The model tracked lower for most of the month, but was boosted by the holding of takeover target Solutia (SOA), which jumped over 40% after the unexpected news was released to the market.

While the trend remains up, equities appear to be over-extended and I expect February to be a month of consolidation or retracement.

AUTHOR

Ronald Guerrini

Ronald began trading in 2006 using Contracts for Difference on the Australian Stock Exchange. He has traded using several approaches and believes technical analysis is the most effective. The most important aspect of trading is risk and managing risk. He believes he has found the level of risk that he can most comfortably trade with and still outperform the market on a regular basis.

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