What I thought was a sure thing turned out to be a pretty big mistake. I lost 4.1% of my position in GLD in a matter of 6 days. Talk about volatile. I’m still watching GLD, XLE, and now EWJ which focuses on Japan. It’s looking like Japan might be starting a new trend pretty soon. But I’m going to be a little bit more cautious about this one.
I’m also learning that I have to be constantly monitoring my 401K’s portfolio. Within the past 2 months, my mutual funds have crept up higher and higher and now would be a bad time for me to jump into them since they seem to be overbought. Oh well, lesson learned.
After seeing signs that I can make a few bucks from GLD, I decided to jump back into the fund. The signs are there for a good upswing: the price today crossed the 200 day moving average, entered above the upper Bollinger Band, RSI indicates that it isn’t oversold or overbought, and finally the cross in the MACD line indicating a potential bullish uptrend. Don’t forget to look at the price. We’ve got 6 consecutive up days.
Made my move today. Gold fell down to it’s 50 day moving average so I got out at $61.15. A 3% loss for GLD but very minimal damage to my overall portfolio. Looks like XLE is heading south as well. If it reaches its 50 day moving average, I’ll be out as well.
I was just looking over my choice of funds in my 401K and positioned myself in for GIEIX. This fund has been doing very well in the past 2 months since I dropped it from my portfolio nearly 60 days ago. It’s gone up a good 13% since June 14. I might be in it too late, but it looks like the trend is up for this fund so I’m taking a gamble on this one with 33% of my 401K. In any case my stop loss is in place just in case my hunch is wrong.
All my funds came over from Vanguard last week into my Scottrade account. I finally positioned myself in the following ETFs: SHY, XLE, and GLD. Because Scottrade’s cash position did not have any money market that came close to the yield of 4+% from my old money market fund, SHY was a recommended position. Its basically some a bond fund consisting of US Treasury Notes yielding between 2.6-4.7%. Its a relatively safe ETF which pays out monthly dividends yielding about 4.2+%. I’m 75% in SHY while the remaining 25% was split between XLE and GLD. XLE is my energy play whereas GLD is my position in gold. Both XLE and GLD performed well today. They’re both poised for a potentially higher trend with both being above their 200 day MA and right at their 50 day MA as well as making newer highs. Sitting in cash in my 401K is rather dull, but I’m waiting for more positive signs to move into the right position.
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