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Long Term Trade Setups
updated, 9/08/04
The objective here is to highlight trade setups that can be held for weeks to months at a time by taking advantage of trends in the market.
This section is for members who do not have time to trade daily setups, possibly because of a job or other commitments. Even if you do not have the time to trade regularly, I believe one can make well timed trades to take advantage of market trends and still make huge gains. The advantage to such a trading system is it would require very little time or work, but the rewards could still be great.
Table of contents:
Click on the corresponding section and you will automatically be taken to that section.
1. RRPIX - ProFunds Rising Rates Fund - moves 125% inverse of the 30 year long bond:
2. Gold, And Precious Metals Stocks.
3. Utility Stocks
This spells disaster for the housing bubble, real estate, and possibly the economy itself. Therefore, stocks in the housing sector represend good long term shorts.
1. RRPIX - ProFunds Rising Rates Fund - moves 125% inverse of the 30 year long bond:
Date added - 5/24/2004
Long term interest rates have broken multi-year downtrend resistance lines and are heading higher for the long term. RRPIX is a mutual fund that seeks daily investment results, before fees and expenses, that correspond to 125% of the inverse (opposite) of the daily price movement of the 30 year long bond.
Fund Inception: 5/1/2002, Minimum Investment $15,000
In the long term, interest rates are definately going up and RRPIX is as close to a 'sure thing' investment as you can get in my opinion. You won't get rich with this fund, as it only moves about 13.5% with each 1% rise in long term interest rates. However, I'd personally feel safe placing a large sum of money in such a fund that I didn't want to actively trade, but wanted to grow it over the long term.
30 year interest rates, TYX - you can see that interest rates are going up.
2. Gold, And Precious Metals Stocks.
Date added - 5/16/2004
Also, gold and silver, and correspoinding precious metals have really taken a beating this year, and have finally fallen to levels which I think represent attractive buys. Note that these stocks, while they may bounce in the short term, will still need to consolidate for many months before resuming strong uptrends, however they have reached fire sale prices and are good long term buys at this point. AAUK, AUY, BGO, CDE, CAU, DROOY, GRZ, HMY, GG, RNO, NEM are a few of my favorites.
For a more details, see the gold stock section on this website:
3. Utility Stocks
Electric Utilities: Symbol DJUSEU
Components (Yahoo Finance)
AEE, AEP, AES, AVA, AYE, BKH, CEG, CIN, CMS, CNL, CNP, D, DPL, DQE, DTE, DUK, DYN, EAS, ED, EE, EIX, ETR, EXC, FE, FPL, GXP, HE, IDA, IAL, LNT, MDU, NI, NST, NU, OGE, PCG, PEG, PGN, PNN, PNW, POM, PPL, PSD, RRI, SCG, SO, SRE, SRP, TE
The US Dollar has been rallying this year, which has been adversely affecting this sector and the stocks below. Once the Dollar weakens again, utilities will likely resume their uptrends.
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