The Big Wave Trading Portfolio is under a full BUY signal with zero pressure weighing on all of our models. The Russell 2000 model coming into this week was under a NEUTRAL condition but Wednesday’s rally on heavy volume confirmed everywhere switched us back to BUY.
Overall, this market is currently under one of the most bullish uptrends I have ever witnessed in my life. Does it look better to me than 1999 and 2003? Yes. Does that mean that we are going have better years than those two years? How in the hell should I know. I can not predict the future. Nobody can. All we currently know is that we have extremely bullish setups in many leading and speculative stocks in so many different diverse sectors. On top of that, what I witnessed on Friday, in the IPO universe, was some of the most across the board heavy buying I have ever seen. I did not see this in 1996-1999 or 2003-2007.
Wednesday and Friday produced some of the most bullish price signals I have seen in a decade and possibly ever. I am not sure what this means but if history is a guide it should be very good for those who are long here. I am fully long and can not do anything with any of the fresh new buy signals that are generated from here on out, if we do continue to move higher. In saying that, I will gladly rotate out of laggards and into new leaders as sell signals are generated.
As of right now, there is nothing for us to do at Big Wave Trading but ride this trend higher. We are fully long and will stay that we until we get real concrete signals to reverse our positions and move to the short side. We do not marry any of our trades. Utmost disciplined is used to keep us in a trend until it ends and then we get out. No questions asked. Ever. Right now, this market is as bullish as it gets on a macro, micro, and technical level. The only thing not in our favor is sentiment in the sentiment surveys. Still that being said, it is only a survey. What are they actually doing with their money and how much of that money as a percent of total account capital is at work. They don’t ask that.
Have a great rest of your weekend everyone. Surf is big again as our Maui winter continues to be another epic winter of warm weather, fun in the sun, and big surf. It doesn’t get any better than this. Trust me, it doesn’t. That is why Maui is the #2 travel destination behind Las Vegas for those that live on the mainland. It is truly paradise. Aloha everyone. Have a great upcoming week full of friends, family, and holiday cheer.
TOP CURRENT HOLDINGS – PERCENT RETURN SINCE SIGNAL DATE – SIGNAL DATE:
CAMP long – 403% – 4/26/12
WAGE long – 231% – 1/8/13
POWR long – 171% – 12/11/12
FLT long – 165% – 9/6/12
HEES long – 144% – 9/4/12
VIPS long – 126% – 7/17/13
DDD long – 125% – 4/30/13
AER long – 120% – 6/27/13
ADUS long – 91% – 4/22/13
WDC long – 88% – 1/9/13
FLDM long – 82% – 8/22/13
WST long – 76% – 1/22/13
ADS long – 72% – 12/11/12
V long – 68% – 8/31/12
LOCK long – 61% – 5/20/13
USCR long – 61% – 4/12/13
BEAV long – 58% – 3/5/13
GLL long – 57% – 2/14/13
NUS long – 54% – 9/5/13
ARC long – 53% – 10/16/13
SHLO long – 53% – 10/30/13
ONVO long – 48% – 10/17/13
SSTK long – 39% – 9/19/13
UEIC long – 37% – 5/28/13
JAZZ long – 36% – 10/22/13
FB long – 35% – 8/23/13
