Weekend Review and Update

Portfolio Allocation

Trade Anatomy Performance

 -.16% MTD |  26.16% YTD

Portfolio Summary

6 long | 2 buys | 3 sells

Watchlist Summary

9 candidates

 

Commentary

The week ended in dramatic fashion for the major indexes, closing down over 3% on Friday, and will surely provide plenty of talking points for people to share over the weekend. At least they'll have more then just the weather as a conversation starter when they are out and about.  Fortunately, I only have one function to attend this weekend, and the markets won't be front and center. Nothing more tiresome then having to answer the same question over and over again. So, what do think the market is going to do? I try to be polite and simply respond with, "I'm not sure we'll have to see how such and such plays out over the next few weeks." 

From my vantage point, it's just another week which  appears to represent a change in the overall trend of the market.  It's not overly surprising to see considering the deterioration in the stock screens since May. Each bounce has had fewer and fewer candidates appearing in the screens, giving a clear signal to choose carefully.  We will continue to position size and manage the remaining open trades accordingly. Market corrections should be looked upon as an opportunity.  A necessity to allow a new batch of stocks to set up constructive charts which can be traded and hopefully profitable for our bottom line. 

Trade Summary

We had three sells this week which were ASC, FLTX, and LXFT.  We also had two buys this week which were ACLS and CCS (charts included in the Portfolio Summary section).

ASC

We gave ASC a second opportunity to work back into the consolidation area, but on the 19th it closed near it's low.  Both the blue and yellow line moved down as well, which was a clear indication to move forward and take our loss on the trade.  The total loss for our portfolio was -.43%.

FLTX

FLTX was removed once the price had moved below the dotted white line.  A tight stop was used because FLTX had not been able to move out of the pricing pattern and allow breathing room on the trade.  In total, FLTX has a -.31% effect on our bottom line, well within our risk limits per trade.

LXFT

LXFT was removed at  61.88 once it went below the low of last Thursday's breakout day.  The trade netted a 50% plus gain and added just over 3% to our bottom line.  When the market comes back around and new candidates are emerging, I wouldn't be surprised to see LXFT on the list.  

Portfolio Summary

 As the market dropped on Friday, it would have been rather easy to take our ball and just go home.  However we've opted to maintain our current positions to see what transpires over the next few days.  It's possible that we could see a move up over those days, but that move should probably be viewed as relief from the current selling pressure.  Our trailing stops are currently set at levels where our total portfolio loss would be around 3.5 to 4% if they are reached. It's very likely that only 1 or 2 of our open positions will survive if the market continues it's descent for a meaningful time. The issue at hand is that it's next to impossible to know just how long or severe a correction will be.  Below are the current open positions.

Watchlist Summary

Naturally the watchlist is in reset mode with the latest move down in the indexes.   This is actually a good situation in the long run.  Hopefully, a correction that works back and forth for a few months will allow a new batch of stocks to set up constructive trading patterns. Try to look at moves down as your next opportunity to find these great stocks. Once the market turns, the stocks moving higher from long weekly charts will be your leaders. It happens every time.  Below are a handful of names that are still on the list.

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