Thursday, January 25, 2007

Gold, baby!

Macro Man will sell out half his Goldcorp at $28.25. 7.5% in a week is too good to pass up.

2 comments:

Dan said...

Dear MM,

This is what confounds us. 7.5% is good but how did you decide to sell it ? Are you looking at further profits next week ?

Infact, thats why we asked for a Generic Trading advise/ tips post which will share your valuable experience to novices like us.

Awaiting that one.

Cheeers
NSCP

Macro Man said...

Well, sadly I didn't sell it (missed by 9 cents), and now it's a buck lower.

Basically, it is my view that we remain in a tactical rather than a
macro driven market. That's the reason that I have not fully
implemented the 'beta plus' equity and FX carry positions.

Such a market, in opinion, favours a "hit and run" trading
methodology, particularly for trades that are something like
statistical arbitrage, where you are looking for asset x to catch up
with asset y. When it starts to do so, I find that it is good to lock
down some profit relatively quickly- after all, there's nothing to saythat asset y won't fall to catch up with asset x!