4-27-2012 mid day comments

[Mike]

I see most CANSLIM stocks working. As I posted yesterday I believed the exposure model was going to get more long. We are at 75% investment with an exposure count of +3. We had the B3 and B6 buy signals yesterday. The Market School exposure model kept us in the market continually since December 20, 2011. I have kept pretty much within one count of the exposure recommendations. I am a little behind the 75% limit right now. I hold URI, ISRG, LNKD, FRAN, and PCLN.

It looks like my climax run read of GNC the other day was premature.

[slgerritz]

I see most CANSLIM stocks working. As I posted yesterday I believed the exposure model was going to get more long. We are at 75% investment with an exposure count of +3. We had the B3 and B6 buy signals yesterday. The Market School exposure model kept us in the market continually since December 20, 2011. I have kept pretty much within one count of the exposure recommendations. I am a little behind the 75% limit right now. I hold URI, ISRG, LNKD, FRAN, and PCLN.

It looks like my climax run read of GNC the other day was premature.

Mike,

I have found your posts to this forum to be most helpful. Following your lead has led me to some nice profits. I am also a fan of the HGSI user group. What I have learned from both groups is definitely making me a better investor.

Thanks again Mike. Keep up the good work.

Stephen

[Riskslayer]

Hi Mike,

So I can get a sense of the amount of pain that one would have to endure tracking the model on exposure near the recommended % invested, I was wondering how much equity draw down (%) did you endure during this recent pullback?

I track my draw downs from the end of day equity peak to end of day trough.

I see a lot of hedge funds prefer to report only only end of month numbers which which I believe greatly obscures a lot of equity volatility that I feel in my trading day in and day out, and covers up very painful draw downs incurred during a month.. but, it's usually other people's money they are managing, so I get how this helps with client management issues.

Have a great weekend,

Shawn

[Mike]

Hi Mike,

So I can get a sense of the amount of pain that one would have to endure tracking the model on exposure near the recommended % invested, I was wondering how much equity draw down (%) did you endure during this recent pullback?

I track my draw downs from the end of day equity peak to end of day trough.

I see a lot of hedge funds prefer to report only only end of month numbers which which I believe greatly obscures a lot of equity volatility that I feel in my trading day in and day out, and covers up very painful draw downs incurred during a month.. but, it's usually other people's money they are managing, so I get how this helps with client management issues.

Have a great weekend,

Shawn

Shawn,
Maybe a picture would be useful. Shown here is my equity computed at the close of each day normalized by the value on April 4 close, the day IBD put the market in correction. I would not have really been able to do anything until the next day however, so I wouldn't have been able to get out at the 100% level. I just exported a broker file for this data and didn't mess with any controls for which dates to select, so the data goes back to only 30 January (3 months)


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[Mike]

Shawn,
Maybe a picture would be useful. Shown here is my equity computed at the close of each day normalized by the value on April 4 close, the day IBD put the market in correction. I would not have really been able to do anything until the next day however, so I wouldn't have been able to get out at the 100% level. I just exported a broker file for this data and didn't mess with any controls for which dates to select, so the data goes back to only 30 January (3 months)


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Here is an equity model starting on December 20, 2011 (follow-through day).

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