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Joshua Hayes
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Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc., a Maui, Hawaii-based stock market advisory service. Hayes is a well-respected stock trader who combines fundamentals, technicals, psychology and money management to trade professionally for his personal,... More
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Big Wave Trading
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Big Wave Trading
  • Big Wave Trading Portfolio Update And Top Current Holdings 0 comments
    Jul 14, 2013 4:51 PM | about stocks: CAMP, RVLT, POWR, CSU, HEES, FLT, ADUS, WAGE, SBGI, CHUY, WDC, TECU, V, GLL, INSM, MEI, LGF, ADS, WST, DDD, BEAV

    The Big Wave Trading portfolio is currently under a BUY mode across the board, with the Nasdaq fully switching to a BUY signal on the 9th with the SP-500 and DJIA following on the 11th. These indexes now join the Russell 2000 which was placed under a BUY signal last Friday. The Russell 2000 is leading the current model switch and was able to build on the gains nicely the past week. Every index performed well this past week. It was nothing short of extremely impressive.

    What makes it even more impressive is that the rally in the overall market is on fumes. That goes for many recent breakouts in high priced highly liquid CANSLIM quality securities. Don't get me wrong, there are plenty of leading stocks breaking out on volume. However, there have been too many TSLA, SPWR, PCLN, GOOG, AMZN, MCD type moves for my personal liking. At the same time, while I may not like it, it doesn't matter. Those that are focusing on price action alone in leading stocks are enjoying their gains as long as they are buying at the exact pivot points in their technical consolidations. For those that can not watch the action all day, I will remind you that you can use buy stops to buy a stock as soon as it breaks out to new price highs.

    Even with the overall low volume, the rally is still impressive. Many stocks are moving higher on volume and many others are setting up in price consolidation patterns with solid accumulation/distribution patterns. I am sure that even if the market pulls back here, knowing that the Fed is in full-on QE/ZIRP/POMO mode, support should be found in the overall market. This hypothesis is based on the current technical patterns remaining as they are and in turn developing into even more bullish technical patterns in the upcoming weeks. If individual stock price patterns falter, this assumption on price action will be nullified. Still, the trend with POMO/QE/ZIRP is very clear. Pullbacks are to be bought and stocks can not sell off more than 10%. That will definitely change one day and this will definitely lead a lot of people that are greedy into the poorhouse but until then you simply can not fight the overwhelming trend.

    Calling tops has been killer to traders the past five years and yet I still see constantly on stock twits and facebook. It was not too long ago on 5/22 that so many new traders/investors were confident this market had top. Now these same traders find themselves underinvested and/or not invested at all. This is the purpose of the market. It is there to fool most of the people most of the time. Looks like they were fooled again. This is why in times like this, if you do not have a system, and invest on emotions, you are going to have a bad time. Emotions are a killer in the stock market. They can only hurt returns over the long run. You must learn to eliminate them, if you are going to learn how to hold stocks like the stocks you see listed below for the big long-term gains. The big money will always be in the sitting and in this market sitting has never been harder. Trust me. I don't even come close to seeing the gains I saw in my personal accounts from 1998-2008. On top of that, stocks simply do not move like they used to. Compare the performances below to some of my past big winners and you will see times have changed.

    One day they will go back to normal. However, until that day happens, it is what it is and price action is all that matters. The trend is your friend until it bends at the end. Make sure that you don't show up late to the trend and ride it lower when it bends and all the smart money is exiting. The Nasdaq has been up 12 of the past 13 stock market sessions yet I see many traders looking to get heavily long here. Seems a tad late to me. However, what do I know compared to what the market knows? The exact same thing you know. Nothing. The market discounts all. Price action is all that is real. Continue to follow price and ignore volume. In this QE world it is leaving many traders underinvested. You must learn to discount it.

    Have a great rest of your weekend and a wonderful upcoming week. Make sure you obey your systems, especially your stops. Always cut your losses short. Never ever ride a losing position and never ever add to a losing position. Especially in a melt-up tape like we have now.

    PS: Can you tell I just got done reading my third Jesse Livermore book of the summer? It is an annual ritual. I recommend it both for new and experienced traders. Once again, have a great weekend. Aloha from Maui!!

    Top Current Holdings - Percent Gain Since Signal - Date Of Signal

    CAMP long - 181% - 4/26/12
    RVLT long - 165% - 3/26/13
    POWR long - 150% - 12/11/12
    CSU long - 107% - 9/4/12
    HEES long - 95% - 9/4/12
    FLT long - 93% - 9/6/12
    WAGE long - 90% - 1/8/13
    ADUS long - 86% - 4/22/13
    SBGI long - 71% - 3/22/13
    CHUY long - 69% - 1/10/13
    WDC long - 54% - 1/9/13
    TECUA long - 49% - 2/5/13
    V long - 48% - 8/31/12
    GLL long - 47% - 2/14/13
    INSM long - 44% - 4/19/13
    MEI long - 40% - 4/10/13
    LGF long - 39% - 4/19/13
    ADS long - 31% - 12/11/12
    WST long - 30% - 1/22/13
    DDD long - 27% - 4/30/13

    BEAV long - 26% - 3/5/13

    Disclosure: I am long CAMP, RVLT, POWR, CSU, HEES, FLT, ADUS, WAGE, SBGI, CHUY, WDC, TECUA, V, GLL, INSM, MEI, LGF, ADS, WST, DDD, BEAV.

    Stocks: CAMP, RVLT, POWR, CSU, HEES, FLT, ADUS, WAGE, SBGI, CHUY, WDC, TECU, V, GLL, INSM, MEI, LGF, ADS, WST, DDD, BEAV
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