Big Wave Trading incorporates a Mechanical Disciplined Signal Generated System and uses a Market Model system to invest profitably in the stock and futures markets. Big Wave Trading also incorporates a strict risk management system and cuts losses immediately if a new purchase does not work in our favored direction right away.
Sunday, September 08, 2013
Big Wave Trading Portfolio Update And Top Current Holdings
Aloha everyone. The Big Wave Trading model is in a mixed variety of signals, with the Nasdaq currently under a BUY signal, the SP500 and Russell 2000 are under a NEUTRAL signal, and the DJIA is under a SELL signal. It is not too often you will see us under all three signals at once but here we are.
Overall, the market does have the “feel” of a market that is ready to launch higher. The reasoning behind this is our analysis of leading stocks, leading industry groups, speculative stocks, and the technical condition of the overall market. Right now, things look really good for a continuation in prices in the uptrending direction.
We are basically fully invested here, with only a small hedge working in the SDOW. This position will be closed out, obviously, if we switch back to a NEUTRAL or BUY signal in the Dow. We are not fully invested based on what we believe or think the market will do. We are fully invested because so many leading stocks have triggered legitimate buy signals that we have utilized all our capital. Do you know what year it was the last time I was all out of cash to deploy in the market? 2003. So the thinking is that based on past analysis the rest of the year should be solid.
Still, do you think we will not sell EVERYTHING if the market tells us to? You know we will. If the market reverses, sell limits or hit, or our big winners reverse on huge volume, trust me we will not waste any time running to the exits and reversing our positions to the short side via leveraged ETFs. At Big Wave Trading the most important thing is to be prepared for everything. Nothing in life is ever guaranteed. Shock events and black swans show up all the time.
However, we would like to point out a correlation between the current market and that 2003 market that remains my best trading period ever in my life. In 2003 we went into Iraq. Now it is 2013 and we are going into Syria. Is history repeating itself again? Probably not. But it sure is rhyming.
Have a wonderful upcoming week. I wish you all the best. Aloha from Maui.
TOP CURRENT HOLDINGS – PERCENT GAIN – DATE OF SIGNAL
CAMP long – 202% – 4/26/12
WAGE long – 145% – 1/8/13
FLT long – 132% – 9/6/12
POWR long – 123% – 12/11/12
HEES long – 103% – 9/4/12
INSM long – 102% – 4/19/13
MEI long – 92% – 4/10/13
ADUS long – 81% – 4/22/13
LGF long – 54% – 4/19/13
WDC long – 48% – 1/9/13
GMCR long – 46% – 4/23/13
CHUY long – 42% – 1/10/13
TRLA long – 38% – 6/28/13
V long – 37% – 8/31/12
ADS long – 37% – 12/11/12
OCN long – 37% – 5/8/13
DDD long – 35% – 4/30/13
CCF long – 34% – 6/28/13
WST long – 34% – 1/22/13
LOCK long – 33% – 5/20/13
BEAV long – 31% – 3/5/13
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small hedge working in the SDOW. This position will be closed out, obviously
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