Trade Anatomy Portfolio
+2.81% MTD | +34.32% YTD
3 longs | 1 buy | 1 sell
Another week down, where each day has brought us closer to either a continuation of the downtrend or a possible reversal up. Well at least that seems to be the perception as of late based on the "flag/triangle" pattern represented in the S&P 500 chart. Individual stock patterns still remain front and center regardless of overall market patterns because proper setups help protect capital when markets sit at a crossroads. You either have constructive charts or you don't. As of now we have a few patterns that are worth watching, but outside of these few, many stocks are nowhere near ready.
We had one buy, and one sell this week. The sweet siren song came calling this week so we repurchased ACLS for the Trade Anatomy Portfolio. We also sold EFOI, locking down our best trade of the year.
The ACLS trade was taken at 3.44, risking .50% of our account value. Total portfolio allocated towards this trade is 4.41% of our capital.
This is what was posted in the Member's Observation Section (9/8/2015) : EFOI has had an incredible run during a difficult market environment. We entered the trade on August 5th at 11.18. EFOI had really been moving since mid-June which by the bar count places it right at 10 weeks. At the current rate of change, as well as, the white bars appearing, we decided to take our profit. Net profit was 150.63% and had a factor of 9% for our bottom line.
This is EFOI as of the close on Friday.
Since posting, EFOI has now moved down roughly 13 points in two trading days. You'll notice that near the top the price bars are painted white. This is a visual clue that a stock is ready to consolidate or near the end of run for awhile. Based on EFOI's rate of change this indicator was used to implement our sell. When used correctly, we are able to take our profits off the table in a timely manner which allows us to then rotate into other stocks.
Currently we are long three stocks, two of which are homebuilders. CCS, LGIH, and ACLS make up our current 20% invested position. CCS went to new closing highs on Friday while the other two remained relatively quiet. Below are the current charts of our long positions. Click for a full screen view.
Not much change has occurred over the course of last week. We are currently sitting at 11 candidates. SMED and BEAT continue to be the most impressive of the batch. The total screen rose slightly this week, but more time might be in order. Generally speaking, our trading screens tend to be double what is currently presented. Below are a few names which have remained constructive during the last several weeks of market action.