Update on My Life

Hello everyone. If you're wondering where the heck I've been lately, I will tell you. I've recently secured an internship that has kept me extremely busy lately. On the plus side, it's an internship in a very relative field in finance. Unfortunately, due to the nature of the job, I can't divulge what it is I work on, but I will do my best to pass on any non-confidential knowledge that I learn as an intern.

I will also do my best to blog at least once a week, but with school, an internship (20 hrs/wk), and a life, it may be difficult to put together thorough posts.

On another note, the Virtual Portfolio is now up 19%. In light of this fact, I am considering lightening up bits of the portfolio by selling positions. This will allow me to lock in these pretty incredible gains. (Currently beating the S&P by 8.3%).

Helping me make this decision in the next day(s) will certainly be index and stock charts. Have a look at the S&P 500:

The chart looks bullish with the 50/200 cross, but also looks bearish in the short term when you look at the RSI indicator. As you will notice, it is above 70 (73.94), which indicates that it is over-bought. We should expect a near term correction to bring the RSI back below 70. With the European situation gaining more attention lately, any negative news could certainly make the market correct pretty heavily. Although this is the case, given the good economic data, I would expect the market to continue its upward trajectory for a while. (We can never be sure though, and this is why I am considering selling positions to lock in my gains on the VP.)

Just something to think about for those of you trying to understand investing and portfolio management. I'd like to post in the near future about something I learned last summer at my internship at Merrill Lynch Wealth Management. One of the financial advisors told me a tool that I could use to predict market movements. This tool is charting the treasury vs the S&P. Because they move contrarily to each other, if you plot them against each other using a regression, you can predict short term movements in the treasury or the index. I'll explain later in the post.

That's it for now. I hope this post finds you all well.

Cheers,
EZ