Despite being stuck in neutral the last week of October, our portfolio gained 3.3% for the month. We are now up over 34% on the year and have gained an average of 1% a week for the last 21 weeks.
I am beginning to position the portfolio more aggressively ahead of what I expect will be a strong finish to 2010. Cash levels are down to 12.5% and I have allocated a portion of the portfolio to deep value/turnaround situations, including RIMM, CHRS, SKX and CBK. I am also looking at adding shares of WINN, JAKK, CHS ans CTRN.
Third quarter earnings have come in strong thus far, and mid-term election gains by the Republicans should set the market up for a strong finish. I continue to have faith in the mid-term election cycle, which predicts a 49% run from the mid-term low to the following year high. At just 12.5% of the portfolio, I have begun to transition to a fully invested position. As the rally takes hold over the next 6 months, I expect to move to over 100% invested.
Overall Sentiment: Bullish.
Portfolio Yield: 7.41%
Projection: Break-out to 1,280+ this winter.
Top 5 Positions:
- Cash - 13%
- First Energy (NYSE:FE)- 6%
- iShares S&P U.S. Preferred Stock Index (NYSEARCA:PFF)- 6%
- Eli Lilly (NYSE:LLY)- 5%
- Excelon (NYSE:EXC)- 5%
Disclosure: LONG: RIMM FE PFF LLY EXC ADBE ELNK WWE SKX