The Big Wave Trading models received no signal switches the past week, despite the weak price action. The Nasdaq and Russell 200 remain under clear uptrends and thus remain under operational BUY signals. The DJIA, SPX, and NYA are still going nowhere overall and remain mixed with the SPX under a weak operational BUY mode and the NYA and DJIA under NEUTRAL conditions. The DJT remains extremely weak and still does not look good which is why it remains under an operational SELL condition.
Our Modus Operandi remains the same as it has been for weeks now in regards to our trading. We continue to receive an absolutely absurd amount of long signals. These long signals continue to work. We finally received our first long signal that immediately failed on Thursday. While this is a short-term concern it is still just one stock and it was a relatively speculative higher quality long signal. It was not the best of the best. Had that been the case then I might be a little more concerned. For now, it is just something we will keep an eye on.
This week was not a good week for the overall market but like I just said that did nothing to stop the onslaught of long signals that we continue to receive. I firmly believe that if the intermediate and/or short-term trend were extremely weak I would not be receiving these signals. If we received zero long signals or just 1 or 2 the past week, while we sold off, I would definitely be very concerned about this slow grinding uptrend on the short-term. As it is, I do not have a lot of reasons to be too fearful in the short-term. Some long-term winning positions took some heavy volume hits on Friday but it is possible this was mostly due to the EOM positioning of mutual funds.
We are definitely concerned about the overall condition of the market short-term following last week but until new long positions stop triggering, the new long signals that do trigger start failing, and more of my long-term holdings start selling off on huge distribution we will continue to look for opportunities to get long stocks that lead the market higher when the overall market is uptrending. If we start to see signs of the market reversing, we will be quick to add hedges and let our trailing sell stops take us out of our weaker holdings.
For now, the slow summer grind higher continues. The key lines in the sand, on our end, remain the 6/9 and 6/15 lows in the major market averages. As long as those levels hold, our uptrend is fine. If those levels crack, you can be sure our game plan will change significantly.
Have a great rest of your weekend and we wish you the best during the upcoming shortened trading week. Aloha.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL
ANAC long – +122% – 1/20/15
VDSI long – +117% – 8/4/14
AGIO long – +110% – 9/24/14
CBPO long – +107% – 10/24/14
PAYC long – +103% – 10/30/14
SWKS long – +91% – 10/28/14
SKX long – +85% – 1/26/15
GIMO long – +79% – 2/2/15
BLUE long – +72% – 2/25/15
VRX long – +67% – 11/17/14
EA long – +63% – 11/10/14
EGRX long – +66% – 4/9/15
PANW long – +60% – 11/10/14
AVGO long – +60% – 10/28/14
RCPT long – +46% – 2/20/15
SERV long – +45% – 11/7/14
ADPT long – +44% – 5/18/15
RUBI long – +38% – 10/29/14
AMBA long – +33% – 5/14/15
DRRX long – +30% – 4/8/15
TERP long – +28% – 1/16/15
DXCM long – +26% – 4/2/15
