Canadian market

US is closed today, but the shock wave continued to hit the global market. I bought into HFU (again) at $13.785 and got some HGU at $26.59. Now I averaged down my HFU cost to about $15.50.

I bought into HFU because HFD, its reverse version shown a black candle (that is, closing price lower than opening price). As well, the highest price of HFD all day is the opening price. After a parabolic uptrend since beginning of 2008, I think it's time for Canadian financials to rebound a bit. Well, I just expect about a 5% rebound in financials from here, which a probable 10% upside for my HFU. If that happens, I will break even. As I said, nothing can drop in a straight line.

HGU went all the way up from $24 at beginning of 2008 to as high as over $36 in 2 weeks, crashed back down to as low as above $26 today. The uptrend definitely was due to the anticipated higher price of gold bullion with weaker US dollar. I'm not greedy here, something close to 10% is perfect to me.

Markets reversed trends faster than I was expected last week. I was not surprised that markets will resume down trend even after US government announced any plan to help the economy. Just that the rebound was so short live that surprise me. All my long positions like mutual funds/closed end funds were down almost 10% more. I'm still waiting for a better time and chance to unload some of those.

I know many people said markets are oversold, a rebound is due. Well but the size of the rebound and the length of time of the rebound can vary. To me, oversold or overbought is not that important. Rather, the distance between the 20-day EMA and 200-day EMA is more meaningful to me.

I'm currently spending some time to do some study there and I hope I can come up with some solid conclusions. I will post them here when I find something.