Big Wave Trading Portfolio Update And Top Current Holdings

The Big Wave Trading Portfolio remains under a BUY condition, despite the harsh sell off this past Wednesday. During such a strong uptrend with the averages constantly riding the 5, 10, 20, and 50 day moving averages higher, it will take more than a one day sell off event to switch our model. The only time a one day sell off would switch the model from BUY to NEUTRAL, in such a strong uptrend, would be if that sell off resulted in a loss of the 10, 20, and/or 50 day moving average on extremely strong volume. Since that was not the case on Wednesday, we remain under a BUY condition. The price action that has followed this session has been very constructive in all major market indexes and leading stocks appear to have weathered the sell off very well so far. For now, this is strong confirmation that the uptrend is still solid. We do understand that this could easily change very shortly if further selling does appear. However, skilled market operators understand that you can not make money on “what-if” scenarios. So for now, the trend remains up and we will continue to hunt for new long positions as signals arise. The intraday price action of Thursday and Friday was very constructive following the sell off, with the market opening lower and closing higher near the highs of the day on both sessions. This action, along with the lack of stocks breaking down in my short scans, is indicative of a market that wants to still move higher here. Another positive sign, for those long in the uptrend, is that very few holdings gave partial sell or full sell signals the past three market sessions. In fact, on Wednesday there was only one full sell, following that big sell off. So overall there remains very few real factual based reasons to turn fully bearish here. Have we started to hedge our positions? Yes. But only in a very minor manner. That being said, if we do reverse lower here, we are ready to increase our hedges and will take action on all sell signals that will generate on a pullback in the overall market. While we are indeed ready to increase our hedges, get short, and pair down our winners, we will wait for the market to tell us to do this. Right now, we want to be like water in a river. Smoothly flowing with the market in whatever direction it decides to go. Have a continued wonderful long weekend everyone. I wish you the best in the upcoming week. Aloha!

Big Wave Trading Portfolio Update And Top Current Holdings

The Big Wave Trading Portfolio is back under a full BUY signal across the board as all major market indexes are hitting new 52-week highs with the SP-500 hitting new all-time highs. The model was in a NEUTRAL pattern coming into the week but on 4/29 the Nasdaq and SP500 switched to a BUY mode with new highs in their respective indexes hit. Following the switch in those two markets, the Russell 2000 and DJIA switched to BUY on 5/3. Overall, it is clear skies in the general market and the distribution day count has been dropped on our end with the market in new 52-week high ground. The good news is that volume was average to above average on the Nasdaq and Russell 2000 which gives us a decent confirmation on the price overall price action. While it would be lovely to see volume well above average on this rally to new highs, we are quite pleased to actually see average volume on the recent move higher. Unfortunately, this surge in volume would have been much preferred in November when the rally started but getting average to above average volume is quite nice considering all the previous low volume rallies we have had to be a part of the past four years. The lower volume rallies would not be a terrible problem if it was not being preceded by heavier volume selloffs. This makes for quite an odd Accumulation/Distribution ratio/rating in regards to the overall indexes. This is why we continue to stress paying attention to leading stocks and their volume only, ignoring the volume in the overall market, during this QE/ZIRP twilight zone market cycle. As long as stocks continue to breakout on volume out of sound consolidation patterns, we will continue to go long our signals as they are produced. Have a wonderful and profitable upcoming week. Aloha from an overcast yet still very warm and cozy Maui. Top Current Holdings – Percent Return – Date of Signal HIMX long – 173% – 12/19/12 EAC long – 141% – 12/17/12 RVLT long – 120% – 3/26/13 CAMP long – 111% – 4/26/12 POWR long – 110% – 12/11/12 CSU long – 108% – 9/4/12 FLT long – 80% – 9/6/12 GNMK long – 72% – 11/16/12 ASTM short – 71% – 7/17/12 HEES long – 69% – 9/4/12 SBGI long – 49% – 3/22/13 WAGE long – 46% – 1/8/13 V long – 40% – 8/31/12 PFBI long – 32% – 11/19/12 CHUY long – 31% – 1/10/13 WDC long – 31% – 1/9/13 BBSI long – 30% – 2/13/13 MNTX long – 29% – 1/17/13 HTA long – 27% – 1/2/13 AMWD long – 25% – 2/1/13 VIPS long – 25% – 3/14/13