Trade Anatomy Portfolio
+.49% MTD | 32.93% YTD
3 long | 1 buy | 0 sells
The S&P 500, up an impressive 8% for the month of October, notched its fourth up week in a row leaving many traders wondering if the market has reached its upper limit. As a trader, I'm always conscious of the current trading environment, but my efforts are more focused on the individual stock setups being presented. Many times indexes can mask the underlying health of the overall market based on their weighting of individual securities. What appears stable on the surface might very well be fractured at the foundation. Currently, 139 names pass the main screen and 72 names are passing the secondary screen, making the most recent market move very narrow based. So far, we've been given a treat, but is there a trick just around the corner?
Surprisingly, the S&P 500 chart trend (yellow line) did not turn up this week.
RTEC was added to the portfolio on 10/21/15. At a cost of 13.16 and an initial stop at 12.13, RTEC represents a 6.39% position, risking .50%.
With the most recent stock addition, the portfolio is nearly 18% invested. IPHI and MXL are to the plus side, but have stayed near their bases. An earnings disappointment or a dip in the market could easily take our positions into the red. For now it's slow and steady as we gradually find new opportunities.
The narrowness of the market's advance can be seen in the number of stocks making it through our screens and then on to the watchlist. A key factor to watch during market consolidations is the number of stocks passing our screens. During healthy consolidation periods, stock screens will continue to gain traction and increase. Just the opposite occurs during unhealthy trading environments. At present, the stock screens have struggled to gain traction during the most recent run. Below are a few to keep an eye for next week.