The Big Wave Trading models have returned to an operational BUY signal on the SPX, DJIA, and NYSE following Friday’s close above their 3/25 HODs. The Nasdaq, Nasdaq 100 and Russell 2000 remain inches away from a return to an operational BUY signal and the DJT is under an operational NEUTRAL signal. Despite the mixed signals, we remain fully invested rotating our laggard stocks out and into leading stocks as new long signals continue to generate on a daily basis.

Despite the shocks sell off on 3/25, overall major market averages have held up very well. Once again, we are completely missing any above average volume on the up days. However, this continues to be a non-issue (until it is not anymore) and price is all that matters to our models for now. The good news is that leading stocks continue to give higher volume signals and it is always more important to focus on the micro when stock picking is in favor. The lack of across the board correlation is benefiting Trend Followers this year and we expect this to continue in the near-term.

There is not a whole lot to discuss this weekend as market averages remain strong with our current holdings continuing to uptrend. While the uptrends have not necessarily been exactly smooth with a lot of stop hunting days it has still been very steady making it easy to hold the stocks you see below as they continue to outperform the overall market. If the market is able to break out to new highs in the upcoming weeks, we should really start to see our holdings outperform. Our fingers are crossed.

That being said, our fingers are not crossed with our hands tied behind our backs. We have stops on every long position below important key support levels and if we do see this stock market do an about face to the downside we will be stopped out of almost all our positions now (outside of the most recent long signals the past 2 weeks) with gains as they have all moved high enough that our final sell stops on the positions listed below will allow us to leave every position in the black.

For now, it is steady as she goes. Bulls pulled in a tad last week on the II and AAII survey. We always like to see that as a wall-of-worry is necessary for stocks to rise. If everyone was confident and long there would be no one left to buy. Our hunch is that many traders will be under invested here if the market decides to break out to new highs. If that is the case we could see a lot of beta chasing. Thank you for reading and aloha from the beautiful west side of Maui.

TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL

VIPS long – +737% – 7/17/13
VLTC long – +130% – 4/2/15
AGIO long – +96% – 9/24/14
PAYC long – +80% – 10/30/14
SWKS long – +78% – 10/28/14
ANAC long – +78% – 1/20/15
CBPO long – +73% – 10/24/14
VDSI long – +69% – 8/4/14
CVTI long – +56% – 11/3/14
RUBI long – +51% – 10/29/14
VRX long – +51% – 11/17/14
AVGO long – +50% – 10/28/14
ESPR long – +49% – 3/9/15
AFAM long – +42% – 1/8/15
EA long – +41% – 11/10/14
LCI long – +35% – 2/5/15
PANW long – +35% – 11/10/14
TERP long – +32% – 1/16/15
CNC long – +31% – 1/8/15
SERV long – +31% – 11/7/14
BLUE long – +31% – 2/25/15