Trade Anatomy Portfolio
+3.07 MTD | +2.74% YTD
5 long | 2 buys | 0 sells
Another week for the market with a similar result, making it feel as though this next week could offer a little change in the weather. Some consolidation would be welcomed to let more charts develop stronger technical setups and allow new leadership to come forward. The slower than usual revival of the main screen during the recent runup reveals what many traders are seeing and that's a general move being created by stocks moving off their lows. Eventually, these stocks run into overhead supply and will consolidate for a bit before attempting a fresh run. In the meantime, the focus remains on having patience to find the setups that fit with my process.
Although the S&P 500 notched its 5th consecutive positive week, the main trend line remains negative.
The portfolio continues to slowly grind higher, and this week, two new stocks were added to the portfolio. With the additions, the portfolio is now 25% invested. Similar to last week, a position was added not near its highs, but rather after a pullback. The position sizing was also not done in the typical fashion that I generally use which is why I thought it best to highlight it in this update.
RUBI was added to the portfolio on Friday at 16.92 and an initial stop of 16.22 was used. If I had risked the usual .50% the total position size would have been north of 12%. At present, I'm not comfortable with that amount of capital being allocated in this position, which is why a flat 5% position was taken. If RUBI is able to move higher and set a stronger technical pattern near the green dotted line, then additional capital will be added. You'll notice the 3 tops set across RUBI over the last several months are acting as resistance points. Clearing the 3rd top would be a strong sign that the trend is ready the move higher.
As I mentioned above the main screen has been slow to populate relative to the rise in the market averages. The list currently sits at 127 stocks, but with each passing week the stocks on the list are showing some technical improvement. A few have even been able to move out of recent bases. OLLI is one such example, closing up over 6% on Friday. When a stock makes a clear break such as OLLI, I will generally move my trailing stop to the prior days close. The reason for this is that when most big winners breakout in a similar fashion to OLLI, they rarely move back below the prior days close. By doing this, the percentage at risk can sometimes be cut in half if the stock moves against me. Below OLLI are a few others to keep an eye on over the next few weeks.