From the Trading Desk

Big Wave Trading Weekend Market Overview

What a week! This has been the most impressive uptrend I have ever seen in my investing career, based on the price appreciation of the general market indexes. This has not been the most impressive uptrend in regards to individual stocks setting up, breaking out, and producing huge returns. However, if the market can consolidate the most recent gains in any fashion and find support at any of the various previous resistance (now support) levels, we could see some amazing high quality setups emerge in individual stocks. For now, we are just too extended to think that anything amazing is going to set up, breakout, and produce huge gains in the short-term. Patience.

I continue to be long more stocks than I have been long at any point since 2007. I am also tracking more stocks than at any point since 2007. The quality, price appreciation, and consistency of the uptrends are not nearly as good compared to with previous large uptrends like in the 1990s or during the 2003-2007 uptrend. However, with any kind of decent normal pullback, it is quite possible that could change very quickly as a lot of stocks are clearly under some very heavy accumulation. It’s hard to believe this is just going to reverse overnight. It could and if it does I have a plan. I just would not bet my personal capital on it.

I will continue to methodically and systematically trade accordingly with my EOD trend following signals, with the overall market very overbought and quality patterns just non-existent due to the overbought condition. That means that any concentration of capital into any 1 or 2 positions will only occur on a very short term intraday basis. This past week we caught the right side both up and down on IDXG and the Fibonacci retracement bounce in NVCN. We will continue to focus on the low priced low float names moving in the pre-market due to contract or earnings related news or even intraday due to large 13D filings like the on on Friday with HMNY. Whatever is moving and can provide alpha with clearly defined risk/reward entry levels is where I will be focusing.

Until this market pulls back expect a lot of intraday trades and oversold RSI swing trades on my end. Every quality name in my CANSLIM and Perfect Speculator scans are just steadily uptrending with all of them extended from their 20, 50, and 200 day moving averages. With all of the long positions I am holding, I am not in too much of a hurry for this uptrend to continue, anyways. I would love a pullback to allow for me to sell off some weaker positions to make room hopefully for some larger higher quality signals. If the uptrend just keeps on melting up, expect a lot more small signals in very volatile low priced low float names.

Have a great rest of your weekend and great luck this upcoming trading week. Trade smart. Aloha.

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

CLR long – +189% – 2/11/16
SSH long – +163% – 12/6/16
HNR long – +148% – 8/25/16
IPI long – +147% – 11/10/16
AERI long – +99% – 8/9/16
MIME long – +92% – 7/8/16
GGB long – +83% – 7/13/16
JDST long – +80% – 8/11/16
DUST long – +77% – 9/8/16
GENC long – +73% – 2/26/16
EMKR long – +67% – 9/15/16
AOSL long – +60% – 6/14/16
HEAR long – +58% – 9/20/16
TMV long – +53% – 8/26/16
DGLD long – +51% – 8/19/16
EFSC long – +50% – 7/11/16
EBIX long – +50% – 3/17/16
SODA long – +49% – 11/7/16
RIG long – +48% – 11/14/16
IBTX long – +47% – 10/6/16
CYBE long – +47% – 8/3/16
IPDN long – +45% – 9/9/16

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