Trade Anatomy Portfolio
-.65% MTD | +7.48% YTD
5 long | 1 buy | 1 sell
It's been a few weeks since the last update. Between Mother's Day, graduations, and baseball tournaments, there haven't been enough hours to go around. Over the past few weeks, the portfolio has slowly worked its way towards the cash side again. It's been a mix of profit taking and trailing stops being hit that have put the portfolio in its current state. For the month the portfolio is down a modest -.65% with 68% cash. There seems to be a lot of noise being made as the market shuffles back and forth, and it has a lot of traders on the edge of their seats. It sort of reminds me of what happens when watching scary movies, and the girl gets up to open the door. You're sitting there on the edge of your seat knowing that someone or something is about to jump out and grab her. But, she opens the door and there's no one there, so you relax a bit and sit back in your seat. The market for the past few weeks has made many think the boogie man was ready to jump out and get them, but he hasn't been there when the door opened. If the last few weeks have made you feel that way, then it's likely you're position sizing your trades too big. With the right position sizing and risk controls, a lot of worry can be removed, and you can concentrate on trading your system.
It's been a few months since I discussed the general markets. The main reason for this is it simply doesn't play a huge role in my decision making. The stock screens and watchlist will naturally work lower or higher depending on the strength of the market trend, which is why I focus the majority of my energy on finding sound setups. I realize that other traders may rely more on the general market trends for their trading style and strategy which is why I've included the S&P 500, Nasdaq, and Russell 2000.
The daily charts below all have an adaptive channel placed over their pricing charts. I tend to use these for trading futures or forex, but they also come in handy to assess the current trend strength of indexes and individual stocks. When price is above the green middle line and the outer channels are progressing higher, then the trend is relatively strong. When price is below the green middle line, but the outer channels are holding the uptrend, then I consider the trend to be neutral. However, if the price is below the green middle line and the outer channels are moving down, then I consider the trend to be negative.
Currently the S&P 500 is neutral, while the Nasdaq and Russell 2000 are negative. Below are the charts and you can click to enlarge.
Over the past few weeks, the watchlist and stock screens have both fallen slightly. Overall there are about 140 stocks passing the main screen, which generally accounts for about 80% of the best trade candidates. That number is down from around 165 which passed the screen a few weeks ago. Below are few stocks that continue to remain constructive.