Its a new year and money managers around the world are resetting their benchmarks. I'm joining in the fun and have reset the RumWave scoreboard to zero. This will be the first full year of the blog, so you will be able to follow in real time as we try to outpace the market. Should be a good time!
Political headlines continue to provide the catalysts to move the markets. The daily scoring system below is useful in determining when a swing point is probable. It looks like the political timeline is set up to hit a new fiscal cliff every couple months for the first half of the year. This should provide lots of political theater for us to worry about.
The RumWave chart got whipsawed pretty hard on the last trading day of the year. Things were going the right direction for a buy signal, but now we are back in no-man's land so I'll continue to stay in cash. I exited my bearish option trade on the morning of the fiscal cliff because I had regained my investment and didn't like the idea of giving it back up.
For those that may be new to the blog, my investment strategy is similar to that of a trophy deer hunter. I'm not going to shoot at anything that moves, I'm going to patiently wait for my strong signals to minimize risk. My goal is 4-6 winning trades (consisting of a 3% DJIA market move) for the year. By using a 3x leveraged ETF this puts us in the ballpark of a 30-50% return on investment for the year. 2012 yielded a 57% gain, so my goals are completely attainable in my estimation.
Thanks for those that followed along so far!
GOOD LUCK IN 2013!