The Big Wave Trading models are under an operational BUY mode on the SP-500 and NYSE following their breakouts to new all-time highs. The Nasdaq, Nasdaq 100, DJIA, and DJT averages remain under a NEUTRAL condition. As each of these indexes break out to new highs, their models will switch to an operational BUY mode. There is a possibility all of the indexes switch to a BUY mode before they break out to new highs but it will take a huge surge in volume for that to happen.
As it is our models are all cosmetic anyways. Despite the mixed operational signals, we are back to being nearly fully invested as we never did drop below 50% invested while undergoing this chop the past 2 1/2 months. Many of our long term positions continued to uptrend and almost all of our new long signals are working and trending higher. It doesn’t get much more solid than that. The only thing better would be larger gains.
While the gains are definitely lacking in overall percentage return those should start to improve if the market decides to follow-through on its recent bullish price action. Sentiment is now in favor of an upside move with the II survey bulls at 6-months low around 47%,the AAII bulls around 25%, and the NAAIM exposure index dropping to 60% invested. This is not a guarantee that stocks will move higher here but it is always better to see the crowd get less bullish or more bearish as we rally. This helps give a wall of worry for our current holdings to climb.
As we head into the week, we should expect the market to continue to rally. Markets hitting fresh new all-time highs while sentiment is going in the other direction is always a positive instead of a negative. However, this will not leave us complacent as every single one of our holdings has a respective trailing sell stop. On top of that, we are always prepared for the market to do anything and everything and have built in contingency plans if that occurs.
We still do have a tiny hedge position in the Russell 2000 but that will be completely removed once the RUT trades above its 4/27 HOD. All in all, we head into the new trading week heavily long and well positioned for a further stock market rally. If we do not get our rally, we have our stops. We wish you the best during the upcoming trading week. We hope to see you in the chat room. Thank you and aloha.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL
VIPS long – +632% – 7/17/13
AGIO long – +124% – 9/24/14
PAYC long – +102% – 10/30/14
VDSI long – +85% – 8/4/14
CBPO long – +81% – 10/24/14
ANAC long – +81% – 1/20/15
SWKS long – +74% – 10/28/14
SKX long – +67% – 1/26/15
VRX long – +64% – 11/17/14
GIMO long – +61% – 2/2/15
BLUE long – +60% – 2/25/15
ESPR long – +58% – 3/9/15
EA long – +52% – 11/10/14
AVGO long – +51% – 10/28/14
RUBI long – +50% – 10/29/14
SERV long – +45% – 11/7/14
PANW long – +41% – 11/10/14
CVTI long – +40% – 11/3/14
TERP long – +27% – 1/16/15
RCPT long – +27% – 2/20/15
