The Big Wave Trading directional models remain under a mixed bag of signals with the COMPQ, RUT, and NDX under operational BUY modes, the SPX, DJIA, and NYSE under operational NEUTRAL modes, and the DJT under an operational SELL mode. Despite the mixed message of the markets, we continue to receive new long signals in leading stocks that continue to work and our top current holdings continue to trend higher well outperforming the overall market currently.
We continue to see no reason to try to top call this market. We are more than well aware of the data that suggest that this market will not or should not continue higher. While we respect the data and are always on the look out for a market reversal, we only take orders from price. We follow price religiously and once price confirms the data we will act accordingly. As long as I continue to receive new long signals and those new long signals work, I would be a fool to not take the signals based on the market having a high P/E ratio or the NYSE margin debt hitting a new all-time record high.
When we take a new long position we immediately implement a sell stop just below the most key support level preceding the signal. If we go long a stock and the stock does not move higher immediately we are stopped out. If we go long a stock and the stock immediately moves higher and continues to trend higher we implement trailing sell stops and move them higher as a stock trends higher. As long as a stock is building a new box (base) on top of a previous box and never breaks below the previous support levels, we will remain long.
When we stop receiving new long positions and/or start receiving new long positions that start failing immediately with zero new long positions working and our long term holdings start to see our trailing stops hit as they break down below key support levels, then we will start looking for a top (which can only be seen and known in hindsight). As this occurs we will receive signals in leveraged short index derivatives that will help us mitigate the drawdown we will have to undergo before we are stopped out of our long term winning positions.
The key point to take away is that we are always protected and as long as this market’s leading stocks are trending higher and outperforming the overall market we are not going to scared out of our positions. We will let our positions tell us when we need to get out. When I start seeing nothing but nonstop bullish articles on this market then I’ll start to worry.
For now, our holdings are telling us to stick with the process. The bearish articles might just be the fuel for the fire we need to get parabolic. We haven’t even gone manic yet. If we go climax/parabolic/manic, then I will even start talking about a top. Until I see this type of price action I have to believe that all of these bearish articles are a byproduct of underinvested bulls that need to get long here.
If you do not see the kind of returns in your own personal holdings that you see below, maybe you should give us a try. We might be 4,900 miles away from wall street but as you can see below it appears to be quite beneficial. We wish you the best in your personal trading during the upcoming week. Thank you and aloha from a little beautiful island in the middle of the Pacific Ocean.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL
VIPS long – +586% – 7/17/13
AGIO long – +144% – 9/24/14
CBPO long – +111% – 10/24/14
ANAC long – +102% – 1/20/15
PAYC long – +101% – 10/30/14
VDSI long – +100% – 8/4/14
BLUE long – +96% – 2/25/15
SWKS long – +89% – 10/28/14
SKX long – +82% – 1/26/15
GIMO long – +76% – 2/2/15
VRX long – +72% – 11/17/14
AVGO long – +70% – 10/28/14
DRRX long – +68% – 4/8/15
RUBI long – +60% – 10/29/14
PANW long – +59% – 11/10/14
EGRX long – +54% – 4/9/15
ESPR long – +52% – 3/9/15
EA long – +52% – 11/10/14
CVTI long – +49% – 11/3/14
AMBA long – +36% – 5/14/15
SERV long – +34% – 11/7/14
RCPT long – +29% – 2/20/15
AMAG long – +25% – 5/6/15
