Deutsche Bank Great Short for Trend Followers
I had a call yesterday of bottom fisher whose hands have been getting burned. He asked me what I thought about Deutsche Bank AG. I told him very simply, from a trend following perspective it was in a long down turn. Other than that, I do not have any opinion. He was exuberant as he told me the bottom was in and it had jumped 14%. He had thought he was buying a bargain as we all like to do, however Cheap has been getting cheaper. He had gotten in around 25.
I tried to explain him the fundamentals of trend following. We have no idea where any market is going. We react…not predict…Leave that to CNBC. We look to let our profits run and cut our losses short.
He was doing non of the above…I did not give any advice rather…Trade with the trend…