Friday, November 14, 2014

Friday, November 14 Morning - Raising Cash to 25 Percent

A brief note here as I do not have time for a full entry.

With the close of markets last evening I've been presented a signal to raise cash to 25% of total holdings.

A number of stocks and ETFs triggered "New Cash" signals last night, so the market is pausing here.

In addition to those stocks that have "New Cash" recommendations, I'm selling the weakest positions in all my portfolios, until each portfolio has 25% overall cash / 75% equity.  The majority of these positions are winners, but, there have been a few dogs so the net will be minimal gains.  I'll post the equity curve this weekend.

I'm selling the positions, not 25% of the positions.  This thins the weakest stocks/ETFs from my portfolio and keeps the strongest ones intact.

My strategy is to enter a 1% trailing stop loss (TSL), good 'til canceled (GTC), effective after 9:45 am this morning.  This method misses the opening volatility while the book clears.

If the "raise cash" signal reverses before positions are sold then any open orders will be canceled.  We won't know this until after the close of markets tonight (Friday).

More to follow this weekend.