The overall stock market remains in a strong uptrend and despite all the top calling and underinvested traders/investors out there everything is firing on all cylinders. There may be a pocket or two of weakness out there but when every index is trending above the 50 and 200 day moving average with leading stocks leading the charge you don’t fight that trend.
Another trend that none should be fighting right now is the momentum in the biotech sector. As you take a look at the XBI you can see we have some real momentum underway in that sector. This is evident in stocks like ICPT which was up 500% over the past two days. There are a lot of biotech stocks with a lot of shorts in them, just like ICPT. So it would not surprise me if we do not see more biotech momentum throughout the rest of Q1 2014.
That being said, we always rely on price for our signals and if price does not agree with our analysis we surely will not argue with it. Price rules and everything is else is noise. That is why we continue to be fully invested here as we have been for months now. It was a much slower process getting fully invested than the previous bull market uptrends of the late 90s and mid 2000s but it has paid off quite nicely lately.
This being said, we are now in the unfortunate camp that we will have to miss the upcoming ICPTs unless we get rotation/sell signals that allow us to sell our weak holdings and move them into stronger holdings. That is basically what we are doing right now, as we continue to trend higher. When we see an actual real reversal, we will be able to raise significant capital again to place into our highest quality signals. Until then, it is just rotating some money out of weak trades and finding proper places for it to go with new signals as we have been fully invested for months now.
All is well on the home front for now and there remains nothing to do but ride this trend higher, holding our winners, and rotating out of our weak holdings into new winners. The big money is always made in the holding and not the sitting. That isn’t my opinion. Those are just the simple facts. Good luck trying to be the 1% of the 1% of daytraders that make the kind of money, post capital gains taxes, that long-term trend followers produce.
Have a lovely weekend and a wonderful and profitable upcoming week. Aloha from the beautiful island of Maui where the weather is an extremely cold 68 degrees at night. Gnarly.
TOP CURRENT HOLDINGS – PERCENT RETURN SINCE SIGNAL DATE – SIGNAL DATE
CAMP long – 430% – 4/26/12
WAGE long – 249% – 1/8/13
POWR long – 189% – 12/11/12
HEES long – 168% – 9/4/12
FLT long – 161% – 9/6/12
VIPS long – 147% – 7/17/13
DDD long – 146% – 4/30/13
AER long – 108% – 6/27/13
ADUS long – 107% – 4/22/13
FLDM long – 104% – 8/28/13
WDC long – 95% – 1/9/13
ONVO long – 86% – 10/17/13
ADS long – 78% – 12/11/12
WST long – 77% – 1/22/13
LOCK long – 73% – 5/20/13
V long – 72% – 8/31/12
ARC long – 58% – 10/16/13
USCR long – 58% – 4/12/13
FONR long – 55% – 12/16/13
NUS long – 55% – 9/5/13
JAZZ long – 53% – 10/22/13
BEAV long – 52% – 3/5/13
CMGE long – 47% – 12/16/13
UTHR long – 46% – 9/9/13
GLL long – 44% – 2/14/13
FB long – 42% – 8/23/13
CMG long – 40% – 7/3/13
RM long – 38% – 7/5/13
UEIC long – 37% – 5/28/13
SSTK long – 36% – 9/19/13
MONT long – 34% – 12/9/13
UCBI long – 33% – 8/1/13
JBT long – 30% – 9/11/13
CLFD long – 30% – 9/24/13
GNW long – 26% – 10/11/13
