The Big Wave Trading Portfolio model remains under a BUY signal in every major market index we track, minus the Russell 2000 which remains under a NEUTRAL condition, heading into next week. Major stock market averages pulled back the past week but did so in a very tight orderly fashion and while volume did tick up a tad on the Nasdaq is was below average overall. For now, it is steady as she goes.
There are some troubling headlines starting to make their way around world equity markets. New concerns out of Iraq, the current instability in the Ukraine, and some weak macro data is starting to make some traders nervous. While these concerns are legitimate, traders must realize that all that matters is price. I know that the Investors Intelligence and AAII surveys show that the crowd is relatively complacent and bullish but on the short-term there is enough worries about the macro and geopolitical future for price to climb the proverbial wall-of-worry.
We remain fully invested at Big Wave Trading with 95% of our non-margin portfolio invested on the long side. The remaining 5% is invested in bear leveraged ETFs. As long as our current positions trend higher above their important moving averages there will be no action taken on our end towards all the negative headlines hitting the tape. When price confirms the news, then we will act accordingly. Until then, this is not the kind of price action you want to fight.
There is no point in wasting any more of your time as conditions remain very favorable here for leading stocks and potential higher prices. Have a great rest of your weekend and great luck in your personal trading during the upcoming week. Thank you and aloha.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE OUR SIGNAL DATE – DATE OF SIGNAL
VIPS long – 394% – 7/17/13
HEES long – 198% – 9/4/12
AER long – 161% – 6/27/13
WDC long – 110% – 1/9/13
TPL long – 87% – 10/22/13
USCR long – 72% – 4/12/13
EOG long – 25% – 2/24/14
