For Monday June 21

If you have been following this week carefully, you'd see that we had a great week. The results below speak for themselves and were spectacular. They were better than the stock market indices' rally. Coffee was up almost 10% in one week. Here are the results:

PORTFOLIO Symbol Entry Close Stop Profit Days
Long Russell TFM10 634.10 662.90 649.80 2880 11
Long Russell IWM 63.29 66.80 65.48 5.5% 11
Long Cotton CTZ10 79.31 78.95 74.71 -180 9
Long Cotton BAL 38.51 38.46 36.39 -0.1% 9
Long Coffee KCU10 146.10 162.10 150.80 6000 6
Long Coffee JO 40.45 44.30 41.21 9.5% 6
Long New Zeal NE1U10 69.42 70.11 69.59 690 4
Long New Zeal BNZ 22.02 22.31 22.14 1.3% 4

One position was stopped out, the short Canadian, with a profit:
Short Canadian CDU10 97.46 97.17 290 1

Note that a few days ago I told you that short Canadian and long New Zealand was contradictory, and were likely not to both be profitable. However, they both were profitable. First, the currencies both fell and made money and stopped out the Canadian, then currencies rallied and a trailing stop locked in profits for the New Zealand Dollar. Chalk that up to another time that I was wrong! It won't be the last. Pleasantly, I followed both signals and made money.

Now, for another one of my conundrums. We are long the Russell 2000 and have made 5.5% in 11 days. I just received a signal to sell short the S&P 500. This obviously contradicts the Russell signal. There are two things we could do in the BLOG follow both simultaneously, or cancell each out and become "neutral" with regard to the stock markets. Note the Russell is more growth stocks; the S&P are the 500 largest, so there is a "spread" type play here.

Statistics on the S&P system: 15 wins out of 17 trades for 88%. Symbols ESU10 and SH.

OK, so what shall I do? I am going to leave both signals in the BLOG. Their rates of return beginning on Monday will roughly cancel each other out, but if one is subsequently left by itself, that will probably determine the next intermediate direction of the stock markets. Personally, I will follow this approach as well.

One more caution: Cotton has been in a long position longer than I would have liked with a loss. This is not good for the signal. The mathematical reasons for the long signal have vanished now. So, it might not be a bad idea to go against the signal and take a small loss because the stop is still deep. What will I do? I haven't decided yet. But for BLOG-tracking purposes, I must leave it in.

If you wish to be notified of new posts, let me know at bassanalytics@live.com. I will send you an email every time there is a new post.Any views expressed herein are provided for informational purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest.The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy.