Thursday, February 18, 2016

Continuing to Buy for the Short Term - Equity Target 25-33 percent

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We could be entering the 4th day of gains for the broad market, which puts it beyond simple short covering.  I bought stocks yesterday, and will be buying a few more today.  Indicators continue to show increasing strength.

Long-Cash Ratio Table
We have further gains -- more stocks transitioned to "New Long" on Wednesday than any time this year.  This means both price and volume went up significantly for those issues.

Click on the image to enlarge.

Regarding the LCR Table, I've described it in other blog entries so please review past ramblings to familiarize yourself.

Cumulative Tick
Continued buying.  Same situation as the LCR Table explanations -- I've detailed what this chart means and how to interpret numerous times in recent history -- read backwards a few entries and you'll understand.  I also posted a video over the weekend which covers it.

Click on the image to enlarge.

Timer Table
Continue entering positions on a short-term basis.  Investment level targets for me are between 25% and 33% due to continued high risk of failure of this signal:

Recent Orders
I entered 5 new positions on Wednesday:

Entered Filled/Canceled Symbol Stop Filled Price Link to Analysis
2/17/2016 7:31 2/17/2016 10:07 BSET 29.02 29.36
2/17/2016 7:32 2/17/2016 9:44 CR 48.45 48.96
2/17/2016 7:41 2/17/2016 9:49 EQM 69.16 69.47
2/17/2016 7:51 2/17/2016 9:53 KIM 26.83 26.84
2/17/2016 7:54 2/17/2016 9:44 ORIT 16.23 16.25

I have a number of orders pending for today.  Again, I buy strength, not weakness, so if a stock did not take out the previous day's high by 0.1% the order will remain unfilled.


Pretty simple.  I reviewed "New Long" recommendations in my stock tracking system.  Subscribers to my Dropbox have free access to that firehose (lots of information in that file).  Those that met REV and EPS growth criteria, while having a good history of growth, are good candidates.

Note that I'm buying for the longer term.  The stocks I entered above will remain in my portfolio until they change in their growth criteria.  All have reported earnings for this quarter so I'm not expecting any new news until April.  I'll sell on a case-by-case basis only.  I'm slowing my portfolio turnover rate and intend to hold these because of their dividend status and underlying good quality background.

I'm certainly not recommending that you buy these stocks.

It's important that when a signal occurs to enter (or to exit) that it is done quickly.  My goal is to get to 25-33% invested fairly quickly, then let the noise settle down.


Stock updates are posted in a daily file that I attempt to share by the following morning with all subscribers. To review the stocks that you are holding and see how I evaluate them, you need to be a member of my Dropbox.  Send an email to pduncan [ a t} v _ t (dot] e du, fixing the address of course, with the word "DROPBOX" in the subject and I'll add your email.  I attended Virginia Tech many moons ago and it is my alumni address, so it should be easy to see how to fix the address -- simply use "".  I also ask that you subscribe to this list using the link to the left, as it's the only way I can communicate with Dropbox users, if the need arises.

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As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.