Solar Flare: Postmarket Update 9/8/09

I did my own back testing on @fundmyfund’s 29 minute a day hedge fund and guess what, i came out with very similar results.  Today i put the strategy into action, I bought 200 shares of SPY at 3:30 and sold at 3:59.  Today’s trade was a push if you’re wondering.  I’m going to play this every day until it loses three days in a row, simple.  The only addition I’m going to make to the strategy is that I’m using a 1% stop loss, I don’t want to get screwed by any trend days where the market pukes hard in the last 30 minutes.  I’m not going to publish my results as this isn’t the type of trading I normally do, I give a high level of transparency to the trading here already.  This strategy will be my own little toy to play with.

Anyway, as for non GS algo machine room happenings.  We got zero follow through on anything today, most things closed where they opened.  Crude went nowhere after it opened for floor trading, $SPY finished 7 cents from where it opened, the dollar was boring as well.  The only two interesting things going on today were the Canadian Dollar weakening against the USD all day and gold moving down as well to close even.  I’m going to rack the $USDCAD action up to the US dollar finding a little support in that cross, and well, I don’t really know what to make of gold, nor do I really care to pontificate on today’s intraday action.

We saw some really nice action from the long side of the book today in MBT and EWT, and that’s really all that happened.

Elsewhere in the equities market, the Solar ETF TAN had a huge day up 8+%.  I’m seeing people falling all over themselves to say that they called this move, but if you go back and look, they’ve been trying to call it for two weeks now.  How much of a draw down were you willing to take on your positions waiting for this move guys?  I have a feeling that this was a one day move as shorts rushed to cover on the 5% jump in crude.  The solar sector is broken fundamentally, the charts are broken technically, and I’m not going anywhere near them.

I continue to hope that by some stroke of luck I get another whack at the gold miners and silver which I stubbornly passed up as they hit my screens last week.

To be honest the minute that closing bell rang I began thinking about the first game of my fall hockey season which starts tonight at 10:00 PM.  The air in New York is nice and crisp today, this is my favorite time of year, the market picks up, hockey begins, and the waves on the island get big and clean.

Have a good evening.

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