FXP update July 11, 2013

Posted by professor  at July 12th, 2013

I just received an email from Brad R. saying that he had been holding FXP but now that the market is rallying, he is selling it.  He also said he noticed that FXP had dropped to the bottom of the Dean’s List, and that he would love to hear my opinion as to how I am handling my own position given my recent comments.

Well Brad, here’s what I’m doing:

I see no reason to sell my Basic Position in FXP at this time.

All of the PT indicators on the Daily chart remain positive, even though the ETF has dropped 1.85 points as I write this.

The ETF appears to be doing a normal wave 2 retracement, and IF the PT indicators stay positive, I will be looking to buy the stock now that the 2-period RSI is oversold, using the 60s as my trigger.  Right now, with FXP in an Uptrend with positive PT indicators  and showing oversold conditions on the Daily chart, .FXP remains a Classic Rifle Trade Buy on the 60s.  I will not sell my Basic position until all of the PT indicators on the Daily Chart turn negative.

BTW, as long as the ETF remains on the Dean’s List…it’s a strong candidate for a Buy.  Stocks and ETFs do drop to the bottom of the List when they are in wave 2s.

TWID,

h

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