Saturday, January 28, 2012

Big Wave Trading Portfolio Update

The Big Wave Trading portfolios continue to be fully invested following our full BUY signal on 1/5/2012. Both margin and IRA accounts are fully invested. As we continue to find new longs all that can be done is to sell the losers and place whatever funds remain in new positions as they generate BUY or SELL signals. A quick reminder: Big Wave Trading never carries losses. Every buy signal has a set cut loss level and it is always obeyed. The loss target on any one trade is to never be more than 0.5% of total account value. Once a stock loses 0.5% of the total account value, even if it has not hit its final cut loss target, it will be completely sold.

Big Wave Trading believes that the market may be in tune for a pullback. However, we also recognize that it is impossible to predict what the stock market will do. Therefore, if we continue to grind higher, this would not surprise us. If we do get a pullback, it appears, based on the very strong accumulation in multiple stocks across multiple sectors of the market, that it would simply end up separating the best stocks from the laggards. This would allow us to move the cash raised from the small losses or profit taking to these true leaders. If we pullback on very heavy distribution, obviously, the pullback will not be a buying opportunity. Like we always say, it is impossible to predict the stock market. Those that do are plain fools and usually their results show it in their brokerage statements.

Top Current Holdings – Percent Gain (Non-Margin) – Date of Signal

RENN – 36% – 1/11/12
IRE – 29% – 1/17/12
YINN – 28% – 1/5/12
WPRT – 24% – 12/20/11
FARO – 22% – 1/6/12

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