The Big Wave Trading Portfolio Models remain under an across the board operational SELL mode. The rally this past week was accompanied by lower volume on each successive day of the rally attempt and the V-shaped move straight off the lows suggest we will have to probably test the lows at some point if we are going to have a meaningful rally to new highs.
Too many traders think that you must trade all the time to make a living. The most experienced traders know the exact opposite to be true. If there are no signals in your system, due to recent volatility, then there are no signals. Trading for the sake of trading is a sure way to the poorhouse over a prolonged period of time. Eventually, any system not receiving signals now will eventually receive signals when conditions are back to normal.
If you are a trader that finds yourself having a tough time sitting still and not trading because you need to trade for the sake of trading you can be 100% sure that one day one of these arbitrary trades will produce a significant drawdown in your account capital. If you are an EOD trader, now is the time to be patient and let the volatility work itself out of the market.
This continues to be a market where I am only focusing on intraday plays as the technical patterns in daily/weekly charts are going to take some time to fix. We recommend focusing on the big percent gainers and losers in the pre-market before the opening bell and then trading those stocks accordingly intraday. We produce a list of actionable stocks that we are watching pre-market and in the chat room every day before the opening bell.
Since we are about to enter the seasonally/historically worst month of the trading year going back to 1929 on the DJIA and 1950 on the SPX, we don’t recommend trying to be a hero here. If you do take long positions for more than a day, we recommend using a smaller portion of one’s account capital per trade than one would if the market was acting in a “normal” manner. Normal is in the eye of the beholder but when we refer to normal as a market that has a clear trend either up or down. This current action is anything but normal.
I am making the weekend video available to everyone, once again. Don’t forget we offer a free trial for everyone to try our services. Aloha from a very warm Maui where the only storm I care about is not the storm in the stock market but the storms that continue to swirl all around our tiny little islands. Enjoy the video!
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – SIGNAL DATE
ANAC long – 293% – 1/20/15
SKX long – 136% – 1/26/15
PAYC long – 119% – 10/30/14
TVIX long – 82% – 8/20/15
TREE long – 81% – 6/2/15
DXCM long – 72% – 12/3/14
ADPT long – 54% – 5/18/15
FIX long – 45% – 3/11/15
ABMD long – 44% – 7/10/15
SERV long – 42% – 11/7/14
AMSG long – 38% – 2/26/15
AVOL long – 35% – 4/21/15
COKE long – 26% – 6/16/15
