The major indexes continue to receive much media attention by inching up to new highs, obscuring the fact many stocks have peaked and are flat or already heading down
Our own stock lists over the past 4 weeks have already become an even mix of longs and shorts, such that our stock-specific trend trading is poised to deliver better results than all-long or all-short strategies.
While we had a number of productive movers last week as always, the overall number is lower than usual, with so many stocks both long and short having flat-lined for the moment. A number of other long positions continued to slump. It was a very uneventful week overall, with few trend direction reversals meaning few trades – a good thing for fully-invested subscribers, but not helpful for new subscribers still building out your portfolio. Patience is key right now.
Note – recently mentioned the importance of timely trading. A good example: FRPT was a reversal from long-to-short last week. The subscriber who did so locked in a +22.4% long gain, then added a first week short gain of +7.3% for a compound trading return of +31.3%. Any subscriber who missed the trade and is still long has a total gain over the same time period of +13.4%. Big difference.
Highlights: 5 new weekly highs in long positions. 9 stocks with double-digit long gains:
ABX +14% IVTY +27% HUN +37% TROX +95%
FIVN +10% NGL +22% KMT +31%
FTK +10% NEFF +38%
4 new weekly lows among short positions. 3 stocks with double-digit short gains:
NPTN +11% ATW +20%