1/5/2014 Patience, Grasshopper

Sector Model	XLP	-1.42%
Large Portfolio	Date	Return	Days
ABX	4/11/2013	-24.59%	268
NEM	9/30/2013	-13.80%	96
ED	10/18/2013	-4.81%	78
ISRG	10/21/2013	-0.81%	75
EW	10/28/2013	-12.72%	68
ARLP	11/11/2013	1.92%	54
JOY	11/18/2013	-1.64%	47
OXY	11/27/2013	-3.55%	38
MUR	12/23/2013	-0.46%	12
SWM	12/31/2013	-0.10%	4
(Since 5/31/2011)
S&P	Annualized	12.61%
Sector Model	Annualized	22.65%
Large Portfolio	Annualized	28.75%

 

No rotation for Monday.  Perhaps one later in the week.

I’ve been doing some tinkering under the hood – and as a result of the improved method, ABX and NEM would only NOW be entering the buy zone.

Lesson learned, assimilated, and programmed in.

Of the top ten in the revised buy zone, I own four: JOY, ARLP, NEM, and ABX.

JOY	COAL
DECK	SHOE
NKE	SHOE
ARLP	COAL
SHOO	SHOE
GCO	SHOE
NEM	GOLDSILV
TM	AUTO
DDAIF	AUTO
ABX	GOLDSILV

 

There is a bit of push-pull going on.  Momentum plays a role in buy choices, AND in sell choices.  We’ll see how well it works going forward.

You’ll note that there are only 4 industries in the buy zone.  That’s because of the newness of the revision.  In a few more weeks 8-11 industries will be in the buy zone at any given time.

But, for now, a bit of patience as I wait for the industries to roll into position.

As for forecasts.  Eh, we have enough for the New Year.  No point my adding to the mix.  Besides, I just pick stocks, regardless of what the broad “market” is doing.  My model outperforms in bulls, but outperforms twice as well in bears.

Makes the bears less of a problem that way…

Tim