The Big Wave Trading Portfolio remains under a BUY signal across the board as all indexes remain in a strong uptrend with the uptrend coming with above average volume on the Nasdaq.
While we have been absent from a weekend report for a couple of weeks now, we remain very heavily invested as multiple new long signals continue to be triggered in individual stocks. The only thing that has changed from 3 weekends ago to this weekend is that during the past week we added a short Russell 2000 hedge. We based this decision on the fact that we are very heavily long, some extreme bull/bear ratios are showing up in the 3 surveys we follow, and the Russell 2000 is showing some Relative Strength weakness compared to the overall market.
We will take the hedge off if we breakout to new highs. However, in the very short-term, that seems like a stretch as we are in some pretty lofty overbought levels on the SP-500 and Nasdaq. Some backing and filling should be expected here and with it appearing to be a slight rotation out of small caps and into large caps, we should expect some down sessions in the intermediate term.
As for the talk of a top. I continue to find it absolutely comical and borderline-entertaining. However, I do not find the stock market entertaining so that is a definite stretch. The stock market is strictly a business to me. A means to an end if you will–financial freedom to do what I want when I want. I find no pleasure in discussing trivial meaningless matters outside of the actual price and volume arena. I just want to know the price and see the stocks price history. All of that noise on CNBC that I have not seen in over ten years continues to not effect my trading.
If you really want to take your trading to the next level, I would suggest the same. Focus on the only thing that matters. Price. Aloha from a very beautiful and warm Maui where Halloween on Front Street in Lahaina was a success and where daylight savings time doesn’t exist. Once again, aloha.
TOP CURRENT HOLDINGS – PERCENT GAIN – DATE OF SIGNAL
WILL BE POSTED SATURDAY EVENING.
