The Big Wave Trading Portfolio remains under a BUY signal with the SP500, Nasdaq, and Russell2000 all hitting more new highs. As is usually the case at these moments, the Big Wave Trading Portfolio is fully invested with very little cash on hand. While we are fully invested, we do not harbor any bullish outlooks or opinions. If the trend reverses we will be more than happy to obey our trailing moving averages.
For now the trend is solid but there are still some minor issues that I see that do have the potential to knock stocks off their high horses. The first issue is the weakness short-term in Biotech stocks. These guys are our leaders. If they start to sell off and confirm the recent action with some high volume selling then we could see this rally come under pressure. If you take a look at the action in BIB and BIS you can see that there has been some extremely high volume transactions taking place recently. These might just be hedges but it is something that should be monitored here.
Other potential issues is the continued rise in defensive industries on a RS basis like REITS and even more troubling is the exponential short-term rise in commodities. Coffee, gold, and agriculture related commodities continue to surge at rapid rates. If this is inflation, it is either going to lift the market as inflation is good for asset prices and/or possibly hurt the market as individuals invest less cash in the market and spend that money on commodities. I know I am covering all of my bases but its true. This is either going to be good or bad for the market. There is no middle ground.
Outside of this, there continues to be very little for us to focus on on the negative front. Prices continue to hit new highs, small-cap stocks continue to show extremely strong intraday momentum, and we continue to have long signals generated even on down sessions. Until this abates, we will move with price.
We still have our fair share of signals that are not successful. However, we continue to cut those losses immediately and are able to move that cash into new actionable signals. That is another sign of a healthy market. When we get sell signals and they are not followed by further actionable signals, then we will also get a hint as to when the market wants to do another round of pulling back/selling off.
Alright everyone. Enjoy the rest of your weekend and upcoming week. Aloha.
TOP CURRENT HOLDINGS – PERCENT RETURN SINCE SIGNAL DATE – SIGNAL DATE
CAMP long – 499% – 4/26/12
VIPS long – 365% – 7/17/13
POWR long – 248% – 12/11/12
WAGE long – 243% – 1/8/13
HEES long – 220% – 9/4/12
AER long – 144% – 6/27/13
FLDM long – 137% – 8/28/13
LOCK long – 100% – 5/20/13
WDC long – 92% – 1/9/13
USCR long – 87% – 4/12/13
GOMO long – 77% – 12/13/13
DDD long – 76% – 4/30/13
V long – 75% – 8/31/12
CMGE long – 74% – 12/16/13
CLFD long – 73% – 9/24/13
FB long – 72% – 8/23/13
JAZZ long – 71% – 10/22/13
TPL long – 60% – 10/22/13
ARC long – 46% – 10/16/13
ICLR long – 45% – 4/30/13
INO long – 41% – 12/23/13
SCTY long – 36% – 12/19/13
GMED long – 32% – 11/26/13
JBT long – 32% – 9/11/13
TSLA long – 30% – 2/7/14
ALXN long – 30% – 11/15/13
VRX long – 27% – 12/16/13
GWPH long – 26% – 2/20/14
