MOO

Since starting this journal, there have been no additions or deletions to the Fiat Fantasy portfolio. I'll use my purchase of MOO on September 21 to illustrate why I bought this ETF. The weekly chart below is from TD Ameritrade's Strategy Desk platform. I wish it looked better here; hopefully, the ideas will still convey. Note I picked this chart because it offers a near perfect illustration of everything I want to see in a buy candidate. So why did I buy MOO?

GENERAL

* The trend of the general market (S&P 500) was up.

* I didn't want to "fight the Fed" and stay in cash knowing they were debasing the dollar.

* MOO is an agribusiness ETF. We prefer to invest in hard assets, natural resources, precious metals and related companies. MOO fits the bill.

PANEL 1

* MOO's stock price was rising on the weekly chart.

* The 13 week moving average had crossed above the 34 week moving average.

* Price was above the Parabolic SAR (green dots).

PANEL 2

* Both MACD period lines are rising.

* There is a gap between the MACD period lines.

PANEL 3

* The Directional Movement + (green line) is greater than the Directional Movement - (red line).

* The ADX (black line) is greater than 20.

PANEL 4

* The six week moving average of the Accumulation Distribution is greater than it was three months earlier.

These are technical indicators, but I'm a rookie, not an expert.  There are numerous websites and books available that discuss technical analysis.  I did add links to "Trader Mike" and "Mao", two excellent sources of information on trading.  Nothing about the approach described here has been tested.  We're testing it on the fly by the seat of our pants.  As the young lady says, it's my party and I'll cry if I want to.  You don't have to and shouldn't.