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Archive for January, 2010

Stock Market Resumes Its Downtrend

Clients are short positioned since January 21, when our trading system signaled an entry opportunity to exploit the coming downside in the markets. We are still holding this position completely untouched ever since. If you want to learn more about Dynamic System (which has returned 61% in 2009), visit our homepage.

As trend followers, we try to hold onto this trade for as long as possible. I would like to give a short update on what is currently being observed: A very visible uptrend channel in the SPY, which took shape since mid-August, has been violated today. Another reason for concern is the break of the multi-month support level at around 109.00. Both of these breaks signal more intermediate weakness ahead and do not happen for no reason.

Yesterday’s announcement by the Federal Reserve to leave the interest rates unchanged was celebrated with cautious enthusiasm initially. It dissipated entirely today and we are resuming our downtrend.

Remake of the Trend Architect Blog is Complete

What you see right now is the improved look of our Trend Architect blog. The reason for this step is to structure our content more effectively and to communicate the mission of our small team clearer than ever on our homepage. We put efforts to bring this message to the public:

  • Make trend following straightforward and available to anyone
  • Offer a solution that is affordable to our clients
  • Guide our clients with professional position management

The product with which we want to achieve this goal is already very profitable at an extremely attractive price. If you take into account how client’s funds increased by nearly 61% in 2009, the $39 subscription fee is compelling! Read more about our vision, Dynamic System’s performance, and other information on our homepage.

Back from Trip in Asia

You might know that I spent a wonderful time in Hong Kong and Kuala Lumpur during Christmas. I twittered from time to time during my trip. Hong Kong is very interesting for its two dimensions of old and modern clashing together.

Besides the overwhelming sceneries, I especially enjoyed the warm climate and food. Now I’m back in cold Frankfurt where it has been snowing basically every day. Here are a few impressions:

Japanese Nikkei 225 Continues to Impress

I pointed out this great trend following opportunity back in early December when a huge upswing was observed in the daily and weekly time frames of the Nikkei 225 stock index. Since then this investment is up 7.4% in roughly over one month. That’s quite a performance for a behemoth index given the short time.

Dynamic System Generates Amazing Returns

Year 2009 ended with astonishing results for subscribers of Dynamic System. Merely 7 trades (round turns) in the SPY were required to reap a 60.75% increase in our trading accounts, just by following its trading signals. More than twice as much compared to our benchmark, the S&P 500 index itself.

This is on top of our 42% we yielded thanks to its entry opportunities. Here are the specific trades we took last year:

# Type Entry Entry Date Exit Exit Date P&L %
1 Short SPY 91.78 01/07/2009 86.42 01/28/2009 5.84%
2 Short SPY 86.23 02/10/2009 72.97 03/11/2009 15.38%
3 Short SPY 80.44 03/25/2009 82.79 03/26/2009 -2.92%
4 Short SPY 81.38 03/27/2009 83.40 04/02/2009 -2.48%
5 Long SPY 82.73 04/08/2009 93.10 06/15/2009 12.53%
6 Long SPY 88.76 07/13/2009 106.94 09/23/2009 20.48%
7 Short SPY 109.05 10/26/2009 106.42 11/05/2009 2.41%
Cumulative Return in 2009:* 60.75%

Although Dynamic System has not signaled a new entry in 2010, yet, we remain patient. It is common for it to have several months of inactivity as its focus is on exploiting huge trends in the stock market. Trading opportunities are accordingly rare throughout the year. Therefore this trading system is best suited for passive traders and investors.

We want to thank all our readers, especially our clients and subscribers for your continued support. All the best for the upcoming year of the Tiger and may you and your loved ones stay healthy.