January 18, 2013

Sold FSHOX - 5.2% in 30 days and high risk of pullback

Monthly RSI of 94 means high risk of pullback. Sector seems strong, retail investors are piling into the market, time to be cautious and take profits.

This trade was right up the center of the channel marked in red, and 5.2% (including the dividend) in 31 trading days.

Pullbacks always happen faster than profits, and you can't use trailing stops on mutual funds with my broker. Profits in the bank rather than hope when the technicals say the rally is breaking down.





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FIDSX 5.2% in 31 days