Following my comments on Sunday's post here's a similar (more informed) article on the possible consequences of the current mid-East political turmoil and it's definitely a reason to actually start worrying about what may be coming down the pipe now that huge funding resources have been looted..
I have already alluded to one consequence of the rising political tensions in the form of higher oil prices and here's two looks at a SPY, QQQ, XLE M3 analysis...the first with the auto-stop turned on and the second with the auto stop turned off. The risk off second model has been the real performer showing that sometimes a What, Me Worry trading program works better than a more conservative risk focused strategy.....keep in mind that a risk off strategy works in this example because we have chosen to focus on issues such as XLE which we know from hindsight (the left hand side of the chart) is a hot sector. If we are strictly focused on the right hand side of the chart (tomorrow) then the auto stop control remains the focus of a risk sensitive trader (both sample models below use a top 1 sort).
