Big Wave Trading Portfolio Update And Top Current Holdings

Big Wave Trading remains under a weak BUY signal (10%) generated on June 29th. The past week was a very inactive week for us with only a few long signals generated (all on Monday). We continue to be in a trendless intermediate market period. From February 3rd to July 6th, the Nasdaq has moved a whopping 1%. From May 9th to July 6th, the Nasdaq has moved 0.09%. The market remains trendless in a range bound trading range. Outside of the Biotech, Regional Banks, and Homebuilders sector, there really is not that much that is blowing me away in individual stocks. The wedging low volume breakouts in leading CANSLIM stocks simply do not interest me in an overall low volume tape. Historically, it is a very risky trade. Over the course of the past three years it has become a higher odds trade due simply to the market being manipulated higher via the printing press via QE1, QE2, Operation Twist1, Operation Twist2. Still, this is a trade (low volume moves) I will not take unless the chart pattern is tight. There are a lot of stocks still building solid bases out there that puts the odds in favor of breakouts. But at the same time, there are price/volume flaws with a lot of these patterns like PCLN, AAPL, GOOG. They have heavier volume on the left side of the base when selling off and lower volume on their current right sides as they rally. This is the opposite of what you want to see, historically. However, in this new world we live in, it could very well work. This is why price is king. We will continue to focus on price at Big Wave Trading, waiting for a stronger BUY or SELL signal. The current signal is weak and needs strength confirmation before we can even think about getting 50% of our portfolios invested on the long side. In fact, the signal is already coming under pressure thanks to the “technical” distribution day on the Nasdaq on Friday. It was a technical distribution day because we were down on heavier volume. However, the intraday reversal was bullish. Therefore, the overall session can be taken away as a positive for the bulls. Overall, this means we are like Switzerland here. We are under a BUY signal but we are very neutral in that our team both see an equal amount of positives and negatives out there. There is no real clear upcoming direction we can attempt to forecast at Big Wave Trading due to the mere fact of there being so many cross-current data coming in from the micro and macro front. It is very much a waiting game. At least it is summer time. I know it is hot on the mainland but it is perfect on Maui and the waves have been big and strong for this summer. If this is what global warming is all about then I am all for it. That is until it hits my pocket book at the grocery store thanks to all the damaged corn, grain, and other ag crops. Aloha and have a wonderful weekend!

Top Current Holdings – Percent Return – Date of Signal

AVD long – 90% – 1/10/12
BVSN short – 76% – 3/19/12
CAMP long – 34% – 4/26/12
VRNM short – 31% – 4/10/12
PHMD short – 31% – 5/11/12
WZE short – 26% – 4/10/12
MAGS short – 25% – 4/18/12
ANGI long – 25% – 5/31/12

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