3 ways to deal with this correction

[Fivetears]

We all have the smarts to nail this bugger down, and we need to do it.

Good idea FT, I think BOJ will slowly raise their interest rates so MORE TO COME!!!!! That's the spirit!!

 

[FUTURESTRADER]

VBob, making Leonardo Fibonacci proud

 

[clester]

Nope, our phase 1 began just about 2 weeks ago. The S&P 500 has been down from it's peak on Feb. 20 every day, except for a slight increase on Feb. 28th after the giant plunge.

I see that. So we're on the 1 week climb?

 

[VirginiaBob]

I see that. So we're on the 1 week climb?

I sure hope so. If we can hit 2% between today and the next couple of days, I'm probably gonna move some off the table.

 

[Fivetears]

I believe this will be a rerun of last year, with a little more oscillation in both directions. Comfortably get yourself positioned in on top of the I-Fund during this market decline, open your folding chair and crack open some ice cold beverages until Christmas. DCA BAH.
There's GOBS of money on the side-lines right now just waiting to flow back in.

 

[VirginiaBob]

Man, if we get another day somewhat like this, Phase 2 is done.

 

[SkiUtah]

Unless, of course, it V's and not W's.....

 

[VirginiaBob]

Unless, of course, it V's and not W's.....

It very well could be, but the last 3 corrections were W's so that's where I'm hedging my bets. Luckily, in my case, even if I'm wrong, I was sitting in the G on Feb. 27th. I don't think I'm going to pull back to 100% G, more like 50% G.

 

[clester]

Is phase 2 over? 2-3% in one day! The short covering rally is over IMHO. On to phase 3. Don't stay too long.

 

[VirginiaBob]

So far...

Today is shaping up to be a positive day. If that is true at lunchtime, I'll be pulling some money back to the G-fund, probably 50% or so. And then if I luck out tomorrow and it still goes up, I'll be 100% G the next day.

 

[VirginiaBob]

Oh well, lost 0.03% or so yesterday instead of the gain of 0.5% I was hoping for, but so far it looks like I'm making 1%+ today. If this continues near the deadline, I'll be selling to the G, either 100% or 50% to prepare for phase 3.

 

[VirginiaBob]

So far strategy is working. Went from 60th place to 36th place on the weekly tally. It's hard to imagine at the end of January I was 124th on the tally. I will probably drop in the tally next week though because I have training all week, so no time to make a move or monitor the market. I'll hold 50% G, 50% stocks until I return.

 

[GGal]

So far strategy is working. Went from 60th place to 36th place on the weekly tally. It's hard to imagine at the end of January I was 124th on the tally. I will probably drop in the tally next week though because I have training all week, so no time to make a move or monitor the market. I'll hold 50% G, 50% stocks until I return.

That improvement is very impressive! I need to check you out.

GA

 

[VirginiaBob]

My bad, I'm 37th, not 36th.

Here is my increase since the last week of Jan.

From week to week, my ranking was 124, 116, 108, 104, 105, 60, and now 37. Hopefully the trend will continue. Actually, what would be better is if I go down in ranking, but not because of losses, but instead everyone gains 10% in a week, while I only gain 8%. I know, I'm dreaming.

Back to my double drop strategy. What may hurt me this week is being at training all week. So if I were to make a move in the evening, it will be a 2 day delay instead of a 1 day delay. I'm a little worried about this increased whipsaw risk, so I may simply hold steady at 50% stocks all week. If I see a couple of huge single day drops in a row, I'll probably jump all in 100% stocks. Hopefully this will be delayed a week, so my entry could be more timely.

 

[ebbnflow]

Nice run up there, VirginiaBob.

Same thing happened to me with this pullback and rebound phase -- #141, #85, and now #13.

 

[VirginiaBob]

Wow, 141 to 13!!! You definitely win some sort of most improved award with that one.

 

[VirginiaBob]

Well, looks like the phase 3 is truly happening.