T.H., January 08
Trading Examples
CENX
This is a typical example of a trade idea from both the long and the short side.
The initial trade was driven by the fundamental demand for commodities that later exploded. It was also attractive from a technical perspective after pulling back to major support. The stock peaked with a gain of 135% from the initial trade.
The short trade reflected the excessive commodity speculation by hedge funds and anticipated the drop in demand for commodities due to slowing world economies. The stock bottomed with a 87% gain from the initial trade.
SPX
This example is an examination of a major market index, the S&P 500. The technical pattern highlights what I determined was a major change in trend and anticipated the next major move.
This index is down almost 40% since this was published on our sister site hybridinvestors.com.
WMT
We bought this because we anticipated that they would be the primary beneficiary of a slowing American consumer and worldwide economy. It was also technically attractive at the bottom of its range.
It peaked up with a 50% gain in less than one year.
