Monday, February 20, 2012

Big Wave Trading Portfolio Update And Top Current Holdings

The Big Wave Trading Market Model remains under a full BUY signal. This buy signal was signaled on 1/5/2012 and has not had a change since. The distribution day had zero effect on the model and thus being fully invested on the long side continues to be the mode of operation. Big Wave Trading will continue to ride its winners higher while selling off any new long that does not trade higher immediately. The capital raised from selling these losers will continue to find its way into new longs and current winners as long as the model remains under a full buy signal. A string of 3-4 distribution days in 2 weeks would no doubt, following the non-stop uptrend we have had, throw the model into a neutral position until the next follow-through day or BUY signal is alerted. We are ready for a pullback at anytime at Big Wave Trading. We do not know if a pullback will be the start of a new bear market or a pause for the rally to continue. Based on the very heavy and clear accumulation in multiple stocks across multiple sectors, an upcoming FB ipo, and the more than likely event of QE3, we do believe any pullback will lead to better buying opportunities as we come upon the bullish months of March to May. However, Big Wave Trading in no way project these opinions into our trading methodology. If the market rolls over, instead, on huge volume, with multiple leading stocks breaking down everywhere, you can be sure we will not be waiting to buy stocks and will instead be short the market. This is a very strong market and trends can last longer than shorts can stay solvent.

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

FFN – 58% – 2/7/12
IRE – 56% – 1/12/12
KORS – 49% – 1/17/12
MOTR – 41% – 2/2/12
RENN – 41% – 1/11/12
YINN – 39% – 1/5/12
UMDD – 34% – 1/5/12
RF – 32% – 1/5/12
FAS – 29% – 1/5/12
JKS – 28% – 1/27/12
CRMT – 27% – 11/30/11
DVR – 25% – 1/13
LNKD – 25% – 1/19

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