Sunday, October 17, 2010
A good swing trade RSX
I like the benefits of buying breakouts into recent highs. I try to follow ETFs for this purpose, I figure I will not lose 10-20% with an individual stocks bad news or panic (like VMW of late) while being able to participate in clear market direction. INP, an India ETF is one that I missed and is showing nice gains. There can be various means to decide on entry and exit based upon moving averages, chart patterns, and time periods (buy 4 week high, sell 2 week low is one I have read about).
On 10/1 I bought RSX. I've made 20% on this one before. I sold it a few days later for 2.5% gain. RSX seems to trade correlated to the price of oil, I expected that there would be a pullback in oil price, along with a change in some of the market sentiment. It has vacillated around 34 since then, currently just higher than my exit. It remains on my watchlist.