Weekend Review and Update

Portfolio Allocation

Trade Anatomy Performance

+3.39% Aug. Month End | +30.65% YTD

Portfolio Summary

3 longs | 0 buys | 0 sells

Watchlist Summary

10 candidates

 

Commentary

This last week can be summed up with one word - MAINTAIN.  Maintain your stops, maintain your focus, maintain a sense of calm, maintain, maintain, maintain.  There we go, I think we said it enough times that the word starts to sound funny.  Sometimes, maintaining means doing nothing at all, which is exactly what occurred last week.  We held our three long positions and continued to monitor our watchlist while the market displayed another week of heightened volatility.  Once volatility starts, you don't need fancy indicators with goofy names to tell you that right now isn't the best time to try and pull off new long trades.  So instead, we MAINTAIN.  

Portfolio Summary

We are still long EFOI, CCS, and LGIH.  The majority of August's performance was driven by one stock, EFOI.  We don't own an excessive amount, but at around a 6% initial position, EFOI with our other trades has effectively provided over 3% to the bottom line. It's another good example of not having to "bet the ranch" to make solid returns. Below are our current positions.

I wanted to make one more point with regards to EFOI's chart.  You'll notice that at around 25, there is another arrow pointing at a white price bar.  This white price bar is actually a culmination of several price specific indicators that are designed to highlight key points during a stock's run up. They tend to occur when a stock breaks out or is ready for a breather.  They also occur when a stock is near the end of it's run.  During healthy markets, the objective is to use them once 15-17 weeks has passed to either take an exit or tighten the stop.  In the case of EFOI, we are nearing that point when looking back at the initial breakout in June. 

Watchlist Summary

The watchlist is currently sitting with 10 possible candidates.  Each stock continued to remain constructive over the past few weeks.  Several are stocks which we owned such as ABTL, AAOI, and ACLS.  BEAT, which has been around since July, continues to impress.  Also this week we did have one breakout, SMED but no trade was initiated.  We'll continue to watch it over the next few weeks and see if it's able to remain constructive.  Below are handful of the charts, which we continue to monitor. Click the first chart to have them enlarged.

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