Joshua Hayes'  Instablog

Joshua Hayes
Send Message
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
My company:
Big Wave Trading
My blog:
Big Wave Trading
  • Big Wave Trading Portfolio Update And Top Current Holdings 0 comments
    Mar 4, 2012 6:07 AM | about stocks: FIO, MNK, AAPL, PCLN, MA, KORS, YINN, IRE, RENN, RF, FAS, UMDD, LHCG

    The Big Wave Trading market model switched from a BUY signal to a NEUTRAL signal following Wednesday's stock market session. The switch from the BUY signal which was triggered on 1/5 to a NEUTRAL signal on 2/29 was caused by a few key factors this past week. 1. New longs have not moved higher immediately leaving most with full cut losses. 2. Current holdings are giving off partial profit taking to full profit taking signals. 3. One key technical indicator called Time Segment Volume continues to show huge negative divergences on the Russell 2000, Nasdaq, and SP 600. 4. The Russell 2000 led the rally from the October reversal higher and therefore should, as history suggest, lead the market lower. This being said, we are well aware that a lot of our current holdings continue to have very strong technical price and volume patterns (Big Wave Trading portfolios remain anywhere from 55%-75% currently invested). On top of this, there are plenty of stocks out there building bases that also sport fantastic fundamentals. Fusion-io (NYSE:FIO) and Questcor (QCOR) are two great examples. Even further more, we have the beloved Facebook (NASDAQ:FB) IPO coming up sometime in the very near future. If the market reverses higher here on higher above average volume with the indexes putting in a convincing 1%+ move, you can be sure our market model will return to a full BUY signal. If selling continues to pick up and leading stocks like Priceline (NASDAQ:PCLN), Apple (NASDAQ:AAPL), and Mastercard (NYSE:MA) breakdown, the market model will switch to a SELL signal. For now, we remain in NEUTRAL, and that means that we invest less capital in new longs, we go short great short setups (not good setups), and we are even quicker to take our losses than we are in a trending market. Cutting losses extremely quick, when wrong, remains disciplined rule #1 at Big Wave Trading.

    Top Current Holdings - Percent Gain (non-margin) - Date of Signal

    KORS - 70% - 1/17/12
    IRE - 49% - 1/17/12
    RENN - 47% - 1/11/12
    YINN - 43% - 1/5/12
    LHCG - 32% - 1/19/12
    FAS - 31% - 1/5/12
    UMDD - 31% - 1/5/12
    RF - 31% - 1/5/12

    Disclosure: I am long KORS, YINN, IRE, RENN, RF, FAS, UMDD, LHCG.

Back To Joshua Hayes' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.