From the Trading Desk

Big Wave Trading Portfolio Update And Top Current Holdings

The Big Wave Trading Portfolio remains under a BUY signal and currently has zero issues weighing on it presently. On the short-term the market is very extended in price compared to trailing key moving averages. Logic dictates that a natural pullback to some form of support levels (fibonacci, price lows, or a moving average) should occur on the short-term. However, when dealing with our current reality we know that we could easily melt-up further in this QE environment before a logical pullback does occur.

With the current uptrend the way it is–where volume is not part of the equation in our analysis–price will continue to be our sole signal generator. During the past week, we did see the Nasdaq suffer what appears to be on the surface a second churning session. However, following this churning session, the Nasdaq subsequently went to new highs. Therefore, for now it is only a surface scratch. For those sessions to have any weighing in the overall model we will have to see further distribution days that then lead price below these two sessions. Until that occurs, we will continue to stay the course.

There were no major developments this week in our personal stock holdings, other than the fact that we have not generated any new long signals the past three market sessions. We believe this might possibly indicate that the market is too extended on the short-term. In saying this, it would not shock us if we got new long signals on Monday. Our current holdings continue to look very solid and we see plenty of stocks setting up in very strong consolidation patterns (ie…INVN) that could easily be another launching pad for another leg higher in this overall market.

The surf continues to be absolutely huge in my backyard home break and I am going to go out and enjoy myself until I get beat up too much or get stung one too many times by all of the man-of-wars that are out there. I look like I have been hit by lightning at this point. Have a great profitable upcoming week. Aloha.

Top Current Holdings – Percent Gain Since Signal – Date of Signal

EAC long – 243% – 12/17/12
HIMX long – 216% – 12/19/12
RVLT long – 134% – 3/26/13
CAMP long – 118% – 4/26/12
CSU long – 114% – 9/4/12
POWR long – 109% – 12/11/12
HEES long – 86% – 9/4/12
FLT long – 84% – 9/6/12
WAGE long – 75% – 1/8/13
GNMK long – 74% – 11/16/12
ASTM short – 71% – 7/17/12
SBGI long – 47% – 3/22/13
BBSI long – 47% – 2/13/13
INSM long – 45% – 4/19/13
V long – 43% – 8/31/12
GMCR long – 41% – 4/23/13

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