GWM Core Equities Folio Update

GWM Core Equities Folio Update

The Core Equities Folio

has 4 positions and is fully invested.

NetFlix

Celegene

Google

PriceLine

NetFlix, Google and Priceline

are up nicely on the day as I write 

(5/15 @ 8:10 am)

NetFlix up over 4% on the day

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Qihoo 360 (QIHU) A New America Folio Holding

Qihoo 360 (QIHU) - 

Company Description:

Qihoo 360 Technology Co Ltd. offers Internet and mobile security products. Its core Internet and mobile security products include 360 Safe Guard and 360 Anti-virus 360 Mobile Safe, 360 Safe Browser, 360 Personal Start-up Page, 360 Application Store and 360 Safebox. The Company also provides advertising services by providing marketing opportunities on our websites and offers web games developed by third parties, provide Internet security services such as remote technical support to paying customers and provide other Internet value-added services. Qihoo 360 Technology Co Ltd. is headquartered in Santa Fe, New Mexico, USA.

Analyst Ratings

Rating: Strong Buy

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

New America Folio type stocks have come back into favor

The Market is Looking Good

Sector Rotation

Investors have been rotating out of the Defensive Sectors

and into the more speculative Growth Sectors.

Out with the Old

The Lower Panel Relative Strength Line
compares the defensive sector index to the S&P 500 Index.
This was our clue to reduce holdings in the defensive sectors.
The shift out of Defensive Sectors began in April.

In with the New

Growth Stocks now Outperforming

This sector rotation is helping our New America Folio. The type of stocks I buy in the New America Folio are back in vogue. We have had numerous breakouts that are holding up very well. The New America Folio is fully invested once again and is now adding to the performance of all GWM Model Portfolios.

New America stocks can outperform the market in a big way when conditions are just right and conditions appear to be just right at the moment. I caught the breakouts in Nationstar Mortgage Holdings (NSM), The Medicine Company (MDCO), Qihoo 360 Technology Co. (QIHU) and more. I will outline some company profiles in upcoming blog posts.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Toyota - Anatomy of Trade

I took a position in Toyota Motor Company yesterday. As I write, Toyota is up over 3% today.

The following Toyota daily chart (very busy - I'm sorry)  illustrates how I choose my entry point when buying a stock.

Essentially, I want to buy a stock when it is breaking out of a properly formed basing pattern, in other words, a period of consolidation. I look for better than average volume on the breakout. This tells me that the institutions are bidding up the stock. I want to own a stock that has caught the fancy of the big boys. They are the only ones that have the true power to move a stock higher.

I have drawn boxes around consolidation periods. Notice the stairstep quality of the moves. My buy point (also called a pivot point) is clearly defined. I buy when the share price enters the Buy Zone, the blue shaded area. If the breakout fails, I sell it when the price enters the Sell Zone, the pink shaded area.

(click on chart for easier viewing)

Toyota Motor Company

Buy Trigger Analysis

GWM Model Holdings
04/11/2013
8:30 am

Toyota symbol = TM

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure 

V-Shaped Market Recovery

Market Snapshot

Uptrend Resumes

GWM Market Direction Model

Buy Signals

Blue Impulse Indicator Fire

Chart View

Blue is Good - Red is Bad

Investor's Business Daily

F-T-D

is further confirmation

of our buy signal

Follow-Through-Day

on NASDAQ

04/10/2013

IBD Follow Through Day
Buy Signal Confirmation

Current Model Portfolio Holdings

Today's Performance

The market dips continue to be bought. Our defensive positions participated nicely in today's rally. 

I added to the Japan positions (DXJ and YCS) on the first buy signal a couple days ago and added some new positions this morning, i.e., Toyota. 

The market has been full of mixed messages lately. Utilities, a defensive sector, rallied to an all time high, while at the same time, aggressive growth stocks bolt higher on the same day.  This is odd behavior. A correction lies ahead somewhere, but just not today. 

Our high conviction positions continue to work well. I have given the high-conviction moniker yet another GWM Model Portfolio position, the ProShares UltraShort Yen ETF (YCS). The Japanese are on a crusade to inflate their economy by driving down the Yen, making their exports more competitive abroad. It is working;Toyota and Honda are outperforming their US competitors by a wide margin.

The market is very unpredictable. So, I will continue follow it's lead, rather than gazing into my crystal ball.

Deutsche Bank Upgrades Celgene (CELG) to Buy from Hold

Friday, April 5, 8:13 AM ET

Celgene (CELG) gets an upgrade from Deutsche Bank to Buy from Hold. The bank says survey data gathered from 100 dermatologists and rheumatologists suggests Apremilast is a "blockbuster." DB raises its price target from $105 to $143. Shares +1.4% premarket.

Celgene is one of our high conviction positions in the GWM Core Equities Folio. It may have trouble bucking the down market today, but should hold up relatively well in the face of a market downturn.

Stock Market Futures Sell Off After Jobs Report Disappoints

The market was expecting 200,000 new jobs. The report came in at only 88,000 new jobs. This is a real disappointment. Futures are off sharply.

The Employment Report is clearly pointing to a weaker economy.

The market's reaction is validating the GWM Market Direction Model sell signal we got earlier in the week. As a result I will further reduce equity exposure and consider taking strategic inverse positions on market bounces. A 5% to 10% correction is now much more likely.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.