From the Trading Desk

BWT Weekend Synopsis

Aloha from Maui. I hope everyone had a lovely Thanksgiving holiday and that you are all enjoying your holiday weekend. There is no rest on my end as I continue to hunt and stalk for the next round of leaders in this uptrend. Right now, there is no question that overall the market is very extended here with the Russell 2000 at the highest overbought reading I can remember going back at least 10 years if not more. Following its 15th up session in a row, it is also doing something I have never seen in my investing lifetime. Impressive and overbought to say the least. The DJIA is not too far behind it with it also being extremely overbought on the short-term.

The Nasdaq and SP-500 still have not entered overbought territory quite yet but it will not take too much more strength for it to do so. The best news for bulls here is that we have been overbought for so long that it seems extremely implausible that this rally will not be supported at some point when indeed the market does decide to pullback. With my operational models under BUY conditions across the board, and with the current price, volume, and breadth action in the overall market, I look forward to any pullback to really swing for the fences on any new high reward/low risk long signal.

As of right now, I continue to be heavily invested in a lot of various long positions with every single one of those long positions outperforming the current overall market’s uptrend currently on a relative strength basis. The new long positions that do not move up immediately, like always, hit my stops and I move on to the next signal and repeat the process until every long position I am holding is moving higher with few to none moving lower. I repeat, repeat, and repeat, over and over again.

That is how I will continue to operate here until the most perfect EOD trend following long setup shows up. It is going to take a healthy consolidation in the overall market to probably set one of those type of technical patterns up. For now, even as the market pulls back or even if it continues higher from here, I will just trade methodically and very carefully until we can work off these short-term overbought readings. I am sure it will not be too much longer before this begins to happen.

Now if you are looking at some real potential momentum/alpha come Monday I have two new trade ideas listed on the Videos/New Speculative Long Positions section for Platinum members. I always recommend buying an early morning dip or buying an early morning breakout above the signal date’s HOD and to take profits at 10% to 25% on at least half of the position and then let the rest ride with trailing stops. Obviously these speculative plays are for experienced traders only as the risk is much greater compared to the normal long signals posted on an EOD basis.

OK. Have a great rest of your holiday weekend everyone. I will see you all either in the chat room or back here on Monday. Trade well. Aloha.

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

CLR long – +176% – 2/11/16
AERI long – +118% – 8/9/16
MIME long – +108% – 7/8/16
GGB long – +98% – 7/13/16
JDST long – +94% – 8/11/16
HNR long – +84% – 8/25/16
DUST long – +83% – 9/8/16
CYBE long – +68% – 8/3/16
GENC long – +68% – 2/26/16
AOSL long – +59% – 6/14/16
EBIX long – +56% – 3/17/16
APLP long – +45% – 3/31/16
TMV long – +43% – 8/26/16
DGLD long – +43% – 8/19/16
EFSC long – +43% – 7/11/16
SODA long – +41% – 11/7/16

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