Dr. Chris Kacher with a PHD in nuclear sciences in 1995 (http://en.wikipedia.org/wiki/Chris_Kacher) wrote a book in 2010 titled “Trade Like an O’Neil Disciple: How We Made 18,000% in the Stock Market.” His web site is www.virtueofselfishinvesting.com. In his interview on the Gabriel Wisdom show last week he said he sold everything in this August after the Nasdaq had five distribution days in the last 20 days. Distribution days are days the Nasdaq market is down with higher volume. It is interpreted as day when the large portfolio managers are selling more than buying. O’Neil is the founder of Investors Business Daily and wrote the book “How to Make Money in Stocks”. I went to a seminar he presented about 20 year ago and sure wish I had paid more attention to his presentation. I am currently slowing reading the latest book his staff has published “How to Make Money in Stocks: Getting Started.” Investors Business Daily’s Market Pulse Current Outlook is still “Market in Correction” which IBD says is time to protect your profits and not a time to buy.
The sum of the deviations (672,674,414) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is below its 50 day moving average and the average is increasing – not a time to invest. Both trends are not up – not a time to invest.
My current investments:
SAirTransportation has a price of $48.61, a sell price of $49.17, a relative rank of 27, and is a sell.
SAutomotive has a price of $51.08, a sell price $50.50, a relative rank of 02, and is a hold.
SBrokerage&InvestmentMgnt has a price of $61.73, a sell price $62.44, and is a sell.
JapanSmallerCompanies has a price of 12.32, a sell price 12.75, and is a sell.
When I sell JapanSmallerCompanies, I will pay a fee of 1.5% since I’ve held it less than 90 days. Since it fell 3.6% this week, I do not think holding it for another 50 or so days is worth it.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Sell SAirTransformation, SBrokerage&InvestmentMgmt, and JapanSmallerCompanies.
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 20% invested