Trade Anatomy Portfolio
+.68% MTD | +33.16% YTD
2 long | 1 buy | 0 sells
The S&P 500 closed out its 3rd consecutive up week and is now bumping into resistance at the Aug. 20th close. We still find ourselves in a similar situation as last week, with a few candidates displaying constructive weekly charts, but not enough to want to dive in head first. There's been plenty of chatter in regards to the percentage of stocks above their 50 day moving averages having increased significantly over the last few weeks. It's actually quite common to see this type of event occur when the general market takes a tumble and retraces a portion of the down move. Traders and money managers hit the clearance aisle looking for bargains, skewing the indicator higher. As a result, this type of indicator has to be taken into context with the overall trend of the market, as well as, the number of stocks passing the screens. Not surprising, the general trend (yellow line) for the SP-500 has not turned higher, nor have our trading screens increased proportionately to the current move in the SP-500.
On 10/15/15, IPHI was added to the Trade Anatomy Portfolio at 26.82 with an initial stop at 24.60, risking .50% of our capital. Portfolio allocation was 6.04%.
There are currently 2 open positions in the portfolio, utilizing 11% of our capital. Both MXL and IPHI exhibit characteristics typical of stocks that can trend well, potentially adding value to the bottom line. Below are their weekly setups.
This week the list moved to 20 candidates, the highest level in several months. Although the list has increased, the majority are still not fully setup. Total number of stocks passing the main screen rose to 145 names from 143 names last week, normally a larger spike would have been expected. This lack of movement higher makes us question the buying power remaining as the current list is roughly 40% lower than it was on Aug. 20th. Simply put, tread lightly. Below are a few weekly setups that are on the watchlist.