Big Wave Trading is currently long numerous positions in the IRA and margin accounts. These accounts will both be nearly fully invested after the round of purchases on Monday. The overall model continues to be in a neutral mode (due to the lack of volume follow through price action). This will change on the next significant move higher on higher volume. There are a lot of top quality CANSLIM stocks producing buy signals over the past couple of weeks and if the new round of purchases work on Monday we should continue to get a rally that last longer than one week. This analysis is based on leading stocks creating bases with many breaking out or near breakouts, the Thursday shakeout which saw the market recover on Friday, and our current holdings which continue to be in either uptrends or working on solid bases. If these stocks fail these breakouts, we will simply cut our losses, and wait for the next round of signals. Big Wave Trading is also short 4 stocks in the margin account. These stocks failed to rally with the market the past two weeks and continue to act weak. Once again, if these stocks move higher, we will cut our losses and put the money to work in a stock that is moving with the trend.
current top holdings – percent return (non-margin) – date of signal
PKT – 27% – 11/7/11