TLS is ex-div on 19-Aug. Normally I check when the next ex-div date is before buying or shorting a stock, plus check the price action around the time of the previous 2 or 3 ex-div dates. However, on this occasion I was short for time, and skipped this step. Yet another mistake to learn from, but maybe I will be lucky this time. Alternatively, if the TLS sp does run up to the ex-div date, I could simply plan to average up, but only if I expect the global sell off to continue for a while.
Last night the decline continued and the SPX breached the 100 day ma of 1913. The recent peak was about 1990, hence, to be technically a correction the SPX needs to fall 10% to 1791, anything less is a dip, but not a correction. The 200 day ma is 1863, hence, a 10% correction will penetrate the 200 day ma, something that has not been achieved since November 2012. Will it get there, I certainly hope so because after it is done, I expect that there will be some excellent buying opportunities, both for my CFDs and for my separate SMSF account.
Of course there are the usual armageddon theories with the megaphone style chart pattern such as that promoted my Martis for example. While the megaphone concept has some merit, myself I can't see it happening in the very low interest environment that we presently live in. Most of my funds that are not tied up in real estate are in term deposits that provide a piddly 3.7%, why do the interest rates have to be so low now that I have achieved debt free status I sometimes ask myself. I was paying much higher rates when I had real estate loans a few years ago. However, although the 3.7% is small, at least the term deposits are safe.
