TODAY’S THOUGHTS: IT IS ONLY GOING TO GET BETTER
I commented earlier on Twitter how the past few weeks have brought a drought of new investment candidates. I have a fairly stringent set of criteria I look for in order to take the time to research, take a position and publish a report for your perusing. I take the time at the close of every trading session to go through a set of stock screeners searching for initial candidates to consider. This happens regardless of whether I am 100% long, 100% cash or somewhere in between. If I find a name that looks like it could be the next SYNC, AUTH or the many others that have brought in 20% plus gains this year, I'll begin accumulating shares. If I am bearish at the time - meaning my trend indicators are all pointing down - then I will put it on ice and wait for the market to become more accommodating before I invest. Either way, rain or shine, I go through this process each trading day. It takes one day of missing my daily routine to miss out on a potential 100% gainer over the span of a few months. The thought of missing such an opportunity, along with the excitement that comes with hitting a home run is what drives me. To this day, I still get the same feeling in my gut when I spot an opportunity that has profit written all over it. The feeling of excitement and anticipation never goes away. Neither does my hunger to win. If I can help you guys win or even better, help you LEARN to win on your own then my job is done. I hope that I have accomplished that to some extent over the past year and a half of keeping this blog. In the future, I hope to make it even better with more in-depth reports on individual stocks, as well as dissecting the markets in a unique manner that cuts through the garbage and arrives at the essence of price action. Price, volume and trajectory points are all that is needed. Clean, neat, simple and monstrously effective. I will be taking a look at the S&P 500 from a technical perspective in the review upcoming this weekend. It should be noted that the S&P 500 today bounced exactly at the crossover point of the generational trajectory from the early 1970s and the important trajectory born at the 2009 lows. This trajectory crossover point is what led me to believe that the bottom in the markets would be seen by Wednesday or Thursday, as noted in the weekend review. In the same review, I...
PORTFOLIO UPDATE: STILL RIPPING
During the trading day I tweeted the following: The original research report on AUTH was published on May 8th here. In my constant pursuit of investment perfection, it became apparent that AUTH was at a point where it warranted a cessation of exposure. Any of you who have been following along for more than a few weeks know that I enjoy riding profits, believing that it is imperative to performing optimally over the long-term. I am not frightened off by the potential to give back profits just because I have them. That is an amateur's game that should be quickly be set aside if you wish to prosper in the markets. AUTH presented me with a number of reasons for today's actions: 1. I hate rumors of anything having to do with the IPhone. A good deal of AUTH's recent advance is due to speculation that they new IPhone will feature AUTH authentication software. While it may indeed be true in this case, I have seen way too many IPhone software, hardware, wig and lipstick runs end with nothing but rabbit ears. 2. It hit my technical target that I have been mentioning over the past week. Please see the chart below. 3. My long-term trend indicator looks like it has a good chance of flipping over should the market move against my expectations and keep falling back. Remember, my short-term and intermediate-term trend indicator flipped in May taking me to a 50% cash position. Should the long-term trend indicator flip, I will be 100% cash regardless of what my feelings or research tell me. I'm a slave to risk management and these are my tools. After taking profits on AUTH, I stand at roughly 30% invested, leaving the portfolio in a heavy 70% cash position. My only long exposure is in SYNC and...
3 CHARTS THAT TELL OF AN IMPORTANT BOTTOM TAKING PLACE IN THE WEEK AHEAD
click chart to enlarge