Friday, April 23, 2010

Bring Your Child to Work Day

Thought I would mark this day because it was a fun and interesting trading day, combined with "Bring Your Child to Work Day." We talked to our child about: saving and earning interest -- and then bonds, stocks (pieces of a company), and then trading (gold, oil, commodities).

I use computerized trading systems, with the main drivers being long-term indicators and intermediate "overbought-oversold" systems. We also have short-term systems for the S&P 500 futures -- which help to manage risk during the day.

The stock market opened scarily lower yesterday (Thursday) -- but the indicators remained strongly long, so we took an additional long position at 9:48 AM eastern time, with the S&P around 1192. This market continues to defy the odds -- and seems to continually climb. As we have blogged before, there are a lot of naysayers -- which may allow us to continue to climb the contrarian "wall of worry."

Chart forS&P 500 INDEX,RTH (^GSPC)

This "Bring Your Child to Work Day" trade did well, with the market closing at around 1208 (so bought at 1192, sold at 1208). We were saying that it's not always "this easy..." But at least it covers allowance for the foreseeable future...

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