Friday, October 19, 2012

T 3 Update...10.19.12

No new ALERTS this morning as of  8:00 AM PST, although the XLF/TLT pair trade that we posted on Monday is now Long TLT and Short XLF.  Since this pair signal is not part of the Alerts program, it is not noted in today's updates.

TLT has proven to be like a greased pig, sliding from one side of the ranking scale to the other...going from #11 to #1 and back to #11 in 8 days.  Currently up .7% for the day, it may still revisit yesterdays lows (119.87) before chugging up, so buyer beware.  Technically, TLT is now oversold to August support levels and we should expect some momentum back up to 124.50...although that plan could get detailed quickly.

There's still a lot of bullish expectation for equity appreciation driven by QE3 although the jobs report and less that stellar earnings reports have dampened enthusiasm a bit. Apple has been stumbling lately and Google's 8% loss yesterday didn't provide any effect...QQQ is likely to stay low in the rankings for a while.

The T3 XLU # 2 position has been the big winner this week, offsetting much of the TLT weakness.  Our goal is not to get all the picks right, just enough to keep ahead of the equity curve and minimize our risk.

Coming soon...a new iteration of T3.
Tomorrow we'll post the T3 lineup for next week with a new risk control measure.
Monday we'll look at the other side of the XLF/TLT pair trade.