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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
    Aug 4, 2013 7:12 PM | about stocks: ADUS, CHUY, INSM, FLT, V, WAGE, LGF, SBGI, MEI, HEES, WST, GLL, POWR, CSU, ADS, TECU, BEAV, OCN, DDD, GMCR, Z, WDC, CAMP, PFBI

    The Big Wave Trading Market Model remains under a BUY signal with zero pressure weighing on it. With the indexes hitting all-time highs and leading stocks leading the way higher, everything is aligned for further potential price appreciation in all asset classes.

    Stocks continue to trend higher and while it would have been very nice to see the market consolidate gains this summer allowing the 200 day moving average to catch up with price it is not in the cards. Still, there is no reason to complain that stocks are continuing to move higher as we are well positioned here. Still, it would be nice to see stocks consolidate these gains and get that 200 day moving average closer to price. With the market so extended from this line, making new investments here is a very risky proposition. If you are not already long, it is going to be very hard to play catch up.

    However, playing catch up has indeed been very possible as earnings season is allowing plenty of opportunities to play catch up with leading stocks producing some nice gains following earnings and after those earnings. The buyable gap ups have worked very well the past two weeks. The best play, for our intraday chat room members, by far, has been buying calls or straddling/strangling stocks with strong EPS/sales growth that are heavily shorted. Recent straddles in FB and QCOR has made one or our members very wealthy and with earnings season still in full swing there should be other opportunities in the upcoming couple of weeks.

    If you are not playing the calls, straddles, or strangles and are not buying the buyable gap ups, it has been a rough go for EOD trading signals. Recent signals on the long side have not performed as well the past two weeks as I would like to see in an uptrending tape. However, most signals are not of the high quality standard that previous signals were due to the fact that this market has been well extended past its upper regression line and 200 day moving average for a while now. This is why recent signals have been weak and why we have kept them small relative to more recent signals.

    Still, it is a strong tape and many more signals are sure to present themselves as we move along. As long as the trend trends higher, there is no reason to top call this QE tape. Set your buy stops in leading stocks and get long at the pivot points, straddle the heavily shorted leading stocks, or buy the buyable gap ups. These trades have been doing very well in this most recent move higher. Buying stocks on an EOD basis following a powerful breakout is still not seeing the follow through that we became accustomed to from 1996-2008. So keep that in mind as if we continue to move higher from here.

    While a nice consolidation allowing the 200 DMA would be nice to see it is what it is and this trend is strong. Don't fight the tape and whatever you do NEVER top call a strong market. One day, this market will go climatic or parabolic, leading stocks will too, and lower highs and lower lows will be set in leading stocks in leading industries. That is when you need to be on the lookout for a top. Until then, ride the trend which is your friend higher.

    Have a great rest of your weekend and I wish you the best during the upcoming week. Aloha from a very beautiful west side of Maui. Aloha!!!

    Top Current Holdings - Percent Gain since Signal - Signal Date

    CAMP long - 178% - 4/26/12
    POWR long - 149% - 12/11/12
    RVLT long - 133% - 3/26/13
    FLT long - 121% - 9/6/12
    WAGE long - 95% - 1/8/13
    HEES long - 94% - 9/4/12
    CSU long - 88% - 9/4/12
    ADUS long - 74% - 4/22/13
    CHUY long - 57% - 1/10/13
    SBGI long - 54% - 3/22/13
    TECUA long - 49% - 2/5/13
    WDC long - 48% - 1/9/13
    INSM long - 48% - 4/19/13
    V long - 43% - 8/31/12
    LGF long - 42% - 4/19/13
    TRLA long - 42% - 6/28/13
    GLL long - 40% - 2/14/13
    ADS long - 40% - 12/11/12
    MEI long - 38% - 4/10/13
    OCN long - 28% - 5/8/13

    DDD long - 25% - 4/30/13

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

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