Currently the Big Wave Trading Account and IRA Account are heavily invested in cash. The margin account is around 15% long and 85% cash. The IRA is 100% cash. We continue to wait on a full buy or sell signal in our market model. The last full signal was a 100% short signal on 9/27. This was reversed on 10/4 going from sell to neutral to 25% long. That long signal was reversed on 10/12 to a neutral signal. This neutral signal gave way to another 25% long signal on 10/18 that was reversed immediately the next day. On 10/27 another 25% buy signal was issued which was immediately reversed on 10/31 back to a neutral signal. The next signal was a 25-33% sell signal issued on 11/9 which was immediately reversed on Friday. These constant false part buy/sell signals are a symptom of a volatile and trendless market. What should be respected is that the model has not produced a single full 100% buy or sell signal since 9/27. This has allowed us to keep losses to a minimum. While it is never fun to be wrong so often it is a normal occurrence for trend following systems in very volatile and unstable tapes. The key is to keep the losses small and to swing small until a full clear buy/sell signal is given. The fact we have not had a full 100% buy/sell signal since 9/27 is a testament to the model working correctly keeping us out of a market where it is easy to lose a lot of money. Minus July-August, it has been a very difficult year for long-term trend following traders. The good news is that very volatile and trendless periods always precede big trends. Big Wave Trading has a system and methodology based on 130 years of stock market price and volume history. When the next trend develops (up or down) we will be there to profit. Stay positive and stay focused. It will get easier. This is a very difficult period for trend followers.
top current holdings – % return – date of purchase
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