Strategies

Scaling out of stocks, into 7-10 yr Treasuries

by Chris Kochiya|Published May 13, 2012

Author: Chris Kochiya

Covestor models: Sector Trends, Stocks Gold Treasuries US Dollar

In the month of April, I scaled out of the S&P 500 (SPY), scaled into iShares Trust Barclays 7-10 Year Treasury Bond Fund (IEF) and held onto the SPDR Gold Trust fund (GLD). These trades fit with my trend-following strategy.

The model fell just 0.3% during April, while the S&P 500 fell 0.8% and the benchmark Dow Jones Moderately Aggressive index fell 0.5%.

I will now sit and observe what trends develop during the month of April, and once again be prepared to rotate out of the weaker trends that I see and into the strongest trends.

AUTHOR

Chris Kochiya

Privately trading for about 20 years, I have worked through a couple of bear markets. Over the years, I have learned that one has to ignore a lot of "noise," i.e., trading methods that don't increase account equity, and to zero in on methods that do.

3 posts