It was a mixed End-Of-The-Month session for the major averages as the Russell 2000 led the way higher while the NYSE and Nasdaq went nowhere and the DJIA, DJT, and SP500 threw up technical distribution days. While the major averages ended mixed, all of the indexes traded poorly intraday with a big rollover in the middle of the day sending stocks lower into the close. For now, this rebound continues to have a very dead-cat feel to it.

That being said, once again, our personal long holdings continue to do well with only one full sell signal triggering following Friday’s session. I have already been fully stopped out of MEMBERS ONLY with a very tiny loss so it is a non-event for me. However, it should also be noted that despite today’s roll over and move to the lows I did not have any sell stops trigger intraday. For now, this is definitely a plus for market bulls.

Another plus is that while the overall market continues to look weak my scans are still throwing up enough uptrending technical patterns to keep me hopeful that this recent action could just be a short-term setback and not something more sinister. However, hope is never a strategy that you want to bet the house on. We continue to recommend an open mind on the current market realizing that we have just as many, if not more, bearish data points than bullish data points.

I did receive two new long signals this evening in two CANSLIM quality names. MEMBERS ONLY is also a Pre-Perfect Speculator scan stock and MEMBERS ONLY is a former Pre-Perfect Speculator scan stock. This gives me the confidence to go ahead and initiate small long positions ahead of earnings. Both stocks have earnings coming up soon but both stocks have such clear defined risk in their technical patterns that I have enough time to know if the trade is good or bad before the actual earnings dates.

Neither new long position is low risk due to the earnings coming up within the next week or two but both stocks are extremely high quality and it would be a real surprise to see either stock gap significantly lower even if they do miss earnings. Either way, my sell stops on MEMBERS ONLY are extremely tight and I will probably be knocked out of it before earnings if the stock does trend lower. One stop is extremely tight on MEMBERS ONLY and the other one gives me some leeway to give it some time to work since earnings are not until the 11th.

Unfortunately, neither long is perfect. That is the tape we are going to probably have to keep dealing with for at least another two months. Just go back each year and check out the trading in August and September. If this August and September are going to be bullish, that sure would be an extremely amazing event. Considering how bullish I see traders on Twitter, StockTwits, and Facebook, I am not sure the bulls are going to get much more upside on the very short-term.

Before I wrap this section up, I want to mention that my limit order on MEMBERS ONLY finally got filled today after being on the books for a week. I now have 10% of my accounts in 3x leveraged inverse ETFs, 15-20% in cash, and remain 70-75% still long these leading stocks bucking the overall market’s trend.

If the market turns lower, I will continue to hedge my long positions and will get stopped out of my current holdings with either large gains, mediocre gains, small gains, or tiny losses. If the market turns higher, I will be stopped out of my hedges and will continue to ride my leading stocks higher. Either way, when you have a disciplined methodology, it is a win/win.

Have a great weekend everyone. I’ll see you in the chat room on Monday. Remember, it’s summer time. Don’t expect too much from this market. Aloha.

TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL

ANAC long – +333% – 1/20/15
SKX long – +150% – 1/26/15
AGIO long – +119% – 9/24/14
CBPO long – +118% – 10/24/14
EGRX long – +107% – 4/9/15
VRX long – +88% – 11/17/14
PAYC long – +83% – 10/30/14
EA long – +73% – 11/10/14
BLUE long – +72% – 2/25/15
SWKS long – +71% – 10/28/14
PANW long – +70% – 11/10/14
ADPT long – +69% – 5/18/15
SUPN long – +57% – 5/22/15
SERV long – +55% – 11/7/14
AMBA long – +52% – 5/14/15
AVGO long – +48% – 10/28/14
SRNE long – +46% – 5/18/15
RDUS long – +46% – 6/17/15
INSY long – +45% – 6/3/15
FIX long – +45% – 3/11/15
NFLX long – +41% – 5/5/15
AMZN long – +39% – 2/25/15
TREE long – +35% – 6/2/15
DXCM long – +34% – 4/2/15
XON long – +34% – 6/17/15
AYI long – +32% – 1/23/15
AVOL long – +31% – 4/21/15
COKE long – +29% – 6/16/15
FCB long – +28% – 5/11/15
ULTA long – +26% – 12/17/14
TILE long – +26% – 3/12/15
LJPC long – +26% – 6/26/15