Like the TV add says you’re sitting on fat profits in your account and you get bored and you take up hang-gliding.  Then you crash into power lines and…So we looked at some ETFs which constitute the financial equivalent of hang-gliding —

but  we are guided by that piece of folk wisdom we learned when we were guiding Boy Scouts through the wilds of New Mexico at Philmont Scout Ranch.  The question asked of tenderfeet was, how do porcupines make love?  And the answer, worthy of  all the grade school jokes told around campfires is…very carefully.  And that’s how you invest in old trends–very carefully and very small.  You decide how much capital you eventually want in the issue, divide that by 5.  Multiply the answer by market price – stop and decide if the risk is acceptable.  That’s your first tranche.  The others are entered if the trend continues and gives you add-on opportunities.

The bio-tech ETF IBB is an opportunity to go hang-gliding. (Remember do not touch this if chary of heights!)

http://stockcharts.com/h-sc/ui?s=IBB&p=D&yr=0&mn=6&dy=0&id=p79433991532&a=340346015

http://stockcharts.com/h-sc/ui?s=IBB&p=D&yr=0&mn=6&dy=0&id=p79433991532&a=340346015

Here the stop is shown, as well as the support line at 1.  We will be watching for  an entry depending on activity next week.  This is an old strong trend and not for neophyte hang-gliders.

This is also true of the internet ETF PNQI.

http://stockcharts.com/h-sc/ui?s=PNQI&p=D&yr=0&mn=6&dy=0&id=p38245662990&a=340349521

There are also buy signals in the EUR/JPY trade and in the FXE   euro.  We think that gains will continue to made over the short term by extracting hens’ teeth.  The reason for this is traders who miss the trend drive themselves nuts trying to catch the turn.  That’s just the way they are folks. They trade their opinions rather than the chart.  Happy trails and happy campfires.