I hope everyone had a lovely time during the holiday filled week. I know I ate way too much but overall it was worth it as it was a great time with friends and loved ones. The stock market indexes also had a nice time this week with our indexes continuing to add to the gains from the previous week. Volume might not have been there this week but following the gains on strong volume the week before it was OK and to be expected during a holiday shortened week.
Overall, our market continues to trend higher with basically no pressure whatsoever on our indexes. On top of that, I am fully long and outside of a few small partial sells everything is trending higher nicely. It simply can’t be much more bullish than that. This also being the case, even with the holiday volume, we had plenty of long signals in many stocks. We took two of them this week with one producing an immediate two-day follow through with a 20%+ gain on very heavy volume. On top of that our chat room expert Paul continues to nail small-cap stocks like OMER, VISN, ICLD, ATHM, KNDI, and APRI in extremely impressive fashion. This joins the list of so many other small-cap stocks that he has nailed before their big moves have started. The DD he is incorporating is putting me to shame and I love it.
With action like this it is hard to be bearish at all. However, we do not harbor market opinions or biases here at Big Wave Trading. We only follow price. That being said we are in a strong uptrend and will not attempt to even try to fight it. This being said, we have noticed that the Russell 2000 has been in a very clear price channel all year long (actually going back to November) and when it hits the lower end of the band it bounces higher into the upper band where it then hits the upper channel line and subsequently rebounds lower to the lower band.
On Thursday my upper band line was hit and on Friday we received a confirmation down day signal. Therefore, I will take the extremely small cash on hand, and begin a tiny starter hedge position. Obviously a break above the recent highs and the hedge comes off. If we continue to selloff, I will increase my hedge and sell off the stocks that give me partial or full sell signals.
That about sums up everything that we have done this week and what we are doing this weekend. Next week will more-than-likely be another low volume uneventful trading week as we go into the New Year’s holiday. Continue to make it a great one and enjoy the lack of work. I see too many traders out there care way too much about this shit and it is mind boggling. I even see some complaining that the market is closed. Are you people nuts? Get your priorities in life straight. This is just 1 reason out of 100 why I live on Maui.
This is the time of the year to see loved ones, family, and friends. These three things are way more important than money. If you don’t understand this then try to make love, hug, or kiss money. See if you get the same feeling/reaction in return as you would from human touch. This is the season to realize what is really important in life. It isn’t the stupid money. If you want to make a lot of money you better love the game of trading. If you are trading to make money…guess who is going to take it all away from you? That is right. Guys like me that don’t give a shit about the money and only want to win. We always win in the long run because we love the game, we love the charts, we love the research. We don’t love the money.
On that note, get out there and spend some time with those you love and forget the damn terminals. I wish you all peace, love, and happiness to you and your family. Aloha from a gorgeous and JAMMED PACKED Maui where I believe everyone that lives on the mainland is visiting currently.
TOP CURRENT HOLDINGS – PERCENT RETURN SINCE SIGNAL DATE – SIGNAL DATE
CAMP long – 367% – 4/26/12
WAGE long – 237% – 1/8/13
POWR long – 168% – 12/11/12
FLT long – 160% – 9/6/12
HEES long – 142% – 9/4/12
DDD long – 137% – 4/30/13
VIPS long – 135% – 7/7/13
AER long – 121% – 6/27/13
FLDM long – 95% – 8/28/13
ADUS long – 95% – 4/22/13
WDC long – 89% – 1/9/13
ADS long – 78% – 12/11/12
WST long – 74% – 1/22/13
V long – 71% – 8/31/12
USCR long – 63% – 4/12/13
BEAV long – 60% – 3/5/13
LOCK long – 58% – 5/20/13
NUS long – 54% – 9/5/13
GLL long – 53% – 2/14/13
CLFD long – 53% – 9/24/13
ONVO long – 52% – 10/17/13
ARC long – 52% – 10/16/13
UTHR long – 49% – 9/9/13
