They Run for the Exits
In last Thursday's column I explained that there were things bothering me about the rally and that I was going to be selling into strength, and, in particular, I was going to sell one of the strongest performing indexes, the Dow.
In addition to the fact that the Dow had just scored a multi-month high, I also figured it would be a good idea to sell my Dow funds at Rydex because it's leveraged 2:1. So, Tuesday morning I sold all of my Dow positions at the morning pricing of 26.07. That was a good idea because, though it closed higher later that day, it's now considerably lower. At this morning's pricing, I reestablished some of those same positions at a price of 25.03, about 4% cheaper than where I had sold them on Thursday. It would have been nice if all I did was sell the Dow last Thursday and buy it back this morning. But it wasn't that simple....689 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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