Archive for August, 2010

*Blue Plate Specials* Portfolio – 8/11/10

Wednesday, August 11th, 2010

Market Notes
The current market scenario reminds me of the Chicken Little mentality: Any whiff of bad news and investors react as if the sky is falling. I dunno…I thought most of the nasty stuff was already priced in but I guess I was wrong…or perhaps, could it be that folks are finally waking up and realizing that the investment paradigm is shifting from a US-centric economy to a global one, and recent jitters are just the growing (groaning?) pains associated with this paradigm expansion?

Just my two cents.

Today’s Portfolio Picks
Because the SPX broke its 40 dma, we initiated a short portfolio instead of a long one. The setup on the short side calls for using half of the funds allocated to the long side. Since the position size remains the same, we’ve selected the five stocks given below to short. They were all selected from the New Lows list and today we certainly had no shortage of viable candidates (alas for the bulls!).
Please note that since we closed out our first portfolio yesterday for a profit, we were able to increase the size of today’s positions (by one-tenth of the excess profits from yesterday per position).

8-11

Today’s Portfolio Close-out
Today’s long portfolio was closed out about 45 minutes before the market closed. The resulting loss will be subtracted from tomorrow’s portfolio, divided equally among the portfolio selections.

7-27

Tomorrow’s Action
If the market moves down sharply again tomorrow, I’ll be forced to sell the rest of the long portfolios and initiate another short one. If the market moves back over its 40 dma, I’ll sell all of the holdings in the 7/28 long portfolio and either move to the sidelines or initiate a new long portfolio, depending on the strength of the rally. The short portfolio will be covered in the event of a major rally to avoid major losses.

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

*Blue Plate Specials* Portfolio – 8/10/10

Tuesday, August 10th, 2010

Market Notes
The market opened lower on negative economic news (lower productivity—perhaps overextended workers are just getting exhausted?) but perked right back up after the Fed decided to extend its easing policy and buy Treasuries. The euphoria is waning going into the close, though, as market internals weaken. Any rally will need the major averages to break these levels: SPX 1150, DJIA 10750, DTX 460.

Today’s Portfolio Picks
Today’s picks are chosen from the following lists: 5 from Breaking out to new highs, 1 from Breaking out to new highs on lower volume, 2 from Breaking out, 1 from Low-priced leaders, and 1 from Darlings of the day.

8-10

Today’s Portfolio Close-out
Today is the first day that a portfolio will be closed out. According to the fund rules (see 4/21 blog), each daily portfolio will be closed at the end of eleven trading days. Today’s portfolio was closed out about 45 minutes before the market closed. The resulting profit will be added to tomorrow’s portfolio, divided equally among the ten selections.

7-26

Tomorrow’s Action
Tomorrow I’ll be selling all of the holdings in the 7/27 portfolio.

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

*Blue Plate Specials* Portfolio – 8/09/10

Monday, August 9th, 2010

Market Notes
Despite a nice gain, the market was unable to break out of its recent trading range. Perhaps the investment community is waiting on the Fed tomorrow..? Expect more of the same rangebound trading until the Bernanke verdict at 2:15 ET (11:15am PT).

Today’s Portfolio Picks
Today’s picks are chosen from the following lists: 3 from Breaking out to new highs, 2 from Breaking out to new highs on lower volume, 2 from Low-priced leaders, and 3 from Darlings of the day.

Capture

Tomorrow’s Action
Tomorrow I’ll be selling all of the holdings in the 7/26 portfolio.

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

*Blue Plate Specials* Portfolio – 8/06/10

Saturday, August 7th, 2010

Today’s Portfolio Picks
Today’s picks are chosen from the following lists: Breaking out to new highs, Speculative stocks, and Breaking out.

Capture

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

*Blue Plate Specials* Portfolio – 8/05/10

Thursday, August 5th, 2010

Market Notes
Market toying with investors as major averages hang at resistance levels. Late day buying (short covering?) spurs indices higher in final moments.

Today’s Portfolio Picks
In my haste to make my plane, I inadvertently assigned only 9 stocks to today’s profile. Profuse apologies! They are chosen from the following lists: Breaking out to new highs, Low-priced leaders, and Breaking out.

Capture

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

*Blue Plate Specials* Portfolio – 8/04/10

Wednesday, August 4th, 2010

Market Notes
Increasingly bullish internals (moderate Trin and lowering VIX) along with gains in tech stocks especially internet issues all provide more fuel for a near-term rally.

Today’s Portfolio Picks
Here are my 10 long stock picks chosen from today’s *Blue Plate Specials* menu. They were selected from the following lists: Breaking out to new highs, Breaking out to new highs on lower volume, Breaking out, Low-priced leaders, and Darlings of the Day.

Capture

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

Note: Comments on my blogs are no longer being accepted due to the high volume of spam. If you’d like to send a comment or contact the author, please go to SeekingAlpha and send your message there. I will post any relevant comments sent to me on my blog here. This policy will be in effect until WordPress can come up with a viable spam filter.

*Blue Plate Specials* Portfolio – 8/03/10

Tuesday, August 3rd, 2010

Market Notes
Rangebound market today. Lackluster internals point to similar action tomorrow, although if the Trin keeps rising (it’s in the 1.6 – 2.0 range right now) a midday rally wouldn’t be a surprise.

Today’s Portfolio Picks
Here are my 10 long stock picks chosen from today’s *Blue Plate Specials* menu. They are chosen from the following lists: Breaking out to new highs and Low-priced leaders.

Capture

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

Note: Comments on my blogs are no longer being accepted due to the high volume of spam. If you’d like to send a comment or contact the author, please go to SeekingAlpha and send your message there. I will post any relevant comments sent to me on my blog here. This policy will be in effect until WordPress can come up with a viable spam filter.

Market Notes & *Blue Plate Specials* Portfolio – 8/02/10

Monday, August 2nd, 2010

Market Notes
Green shoots continue to sprout both here and in Europe as the market reacts positively to increases in domestic ISM numbers and construction spending along with positive bank earnings from Paris-based BNP Paribas (BNPQY) and London-based HSBC (HBC). Or, maybe everyone’s still aglow after spending the weekend surfing and sunning at the beach.  Just a thought.

Technically, there are two pieces of good news. The first is that all the major indices, including that tortoise in the race, the tech-heavy OEX, are now trading above their widely-watched 200 day moving averages (dma). Add to that rising investor confidence reflected in the VIX (volatility index), now at its lowest level since the beginning of May, and you get the recipe for a nice summer rally. But don’t expect it to go up in a straight line; today’s extremely low Trin (Arm’s Index, a measure of buying and selling pressure) typically indicates that a reversal is imminent, meaning that I wouldn’t be surprised if the market opens lower tomorrow (but it doesn’t mean that it will continue in that direction!).

Now that all of the averages have cleared resistance, the next major hurdles are the following:

SPX 1150
DTX 460
DJIA 10750
OEX 520
Nasdaq 2300
VIX 20

Should these levels be broken, technical analysis of the charts indicates moves to the following levels (which coincidentally turn out to be close to their previous highs):

SPX 1225
DTX 510
DJIA 11450
OEX 555
Nasdaq 2500

Today’s Portfolio Picks
Here are my 10 long stock picks chosen from today’s *Blue Plate Specials* menu. They are chosen from the following lists: Breaking out to new highs and Breaking out to new highs on lower volume.

Capture

For more info on how this portfolio is generated and how you can construct your own, see the fund rules in the 4/21/10 blog. And remember to do your own due diligence!

Note: Comments on my blogs are no longer being accepted due to the high volume of spam. If you’d like to send a comment or contact the author, please go to SeekingAlpha and send your message there. I will post any relevant comments sent to me on my blog. This policy will be in effect until WordPress can come up with a viable spam filter.