Another roller coaster week (down – up – down) ended with stocks little changed, for what was likely a neutral week for those of you who are highly diversified. With the broad market downtrend intact, more gains continue to accrue among short positions than long ones.
For those of you unable to short, patience is the name of the game until institutional investors decide the time is right to return to all the stocks that are technical “shorts” or “avoids” currently. At least idle capital, intact another week, is preferable to the significant losses passive investors are continuing to incur.
At this point all major indexes, even the Nasdaq Composite, are negative on the year, with investors who hold S&P500 Index-based positions having forfeited all gains dating back to May 2014 (15 months ago).
Highlights: 2 new weekly highs. Double-digit long gains remain in AKAO +10% and PLNR +24%.
10 new weekly lows. Significant double-digit short gains continue in:
HPQ +17%
SFUN +28%
NVIV +32%
ABUS +44%
XOXO +10%
Locking in short gain of +34% in BAS (13 weeks).
Analytics: Several formula tweaks designed to capture gains sooner before they begin to fade, confirmed effective through extensive back-testing, have been implemented, constituting Version 45