Monday, July 30, 2012
Yield Makes a Difference
The GE yield surprises many investors and is an attractive feature for longer term investors. On the shorter term GE has an ATR8 of $ .41 or a daily 2% range averaged over 8 days. That's pretty volatile and also surprisingly consistent. GE typically trades 25% more volume than QQQ on a daily basis and I've mentioned before the emphasis that several prop trading shops focus on it. Making GE work effectively as part of a Mosaic model is a work in progress.
Next month we look at a couple "off the wall" Mosaic models that contain GE and a few other surprise stocks in lieu of ETFs just to see some options for offsetting risk while still delivering a respectable capital appreciation.