The Big Wave Trading Portfolio is under a BUY signal across the board as all of the major market indexes are trending higher with leading stocks across many sectors leading the way. While there are many short-term concerns for this market with Ukraine, Iraq, the Fed, inflation, the GDP, and overbought conditions, price continues to trend higher. As long as price trends higher, these headline stories are nothing but a wall of worry for it to climb. When you have broad leadership and consolidation in certain sectors as we have now, you don’t fight that.
One day the trend will change for good. However, trying to get ahead of that change in trend due to the current round of news headlines being negative (what a surprise right?!) is a suckers game best left for suckers. When the price action changes, we will have plenty of opportunities to take action as the change happens. Until the selling starts and the trend changes any talk of a top continues to be foolish. The tape is too strong right currently for that noise.
It was an overall solid week for the major market averages and nothing has changed on our outlook following the past week. As we head into the Fourth of July holiday, we remain fully invested with a very tiny hedge in the Russell 2000 that will remain until we break out to new highs. Leading stocks continue to break out, other leading stocks are near breakouts, and lagging leaders with solid fundamentals are rounding up off their lows. This is positive price action. Not negative.
I wish you all the best this holiday shortened trading week. Thank you and aloha from the beautiful island of Maui.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE OUR SIGNAL DATE – DATE OF SIGNAL
VIPS long – 426% – 7/17/13
HEES long – 195% – 9/4/12
AER long – 162% – 6/27/13
WDC long – 112% – 1/9/13
TPL long – 86% – 10/22/13
USCR long – 79% – 4/12/13
WUBA long – 28% – 6/10/14
ISR long – 28% – 5/28/14
EOG long – 28% – 2/24/14
GWPH long – 27% – 6/9/14
