09/15/2013 Mousetrap

Sector Model XLU & XLK 1.29%
Style Model Small Value

Large Portfolio Date Return Days
CAJ 9/25/2012 -6.83% 355
ABX 4/11/2013 -26.59% 157
TTM 5/6/2013 -1.25% 132
OKE 6/17/2013 16.13% 90
BTI 7/1/2013 3.77% 76
CLH 7/8/2013 11.49% 69
FAST 7/22/2013 7.56% 55
VAR 8/2/2013 1.84% 44
OUTR 8/19/2013 -8.33% 27
QCOM 9/3/2013 3.47% 12

(Since 5/31/2011)
S&P Annualized 10.40%
Sector Model Annualized 22.98%
Large Portfolio Annualized 28.47%

From: [url]http://market-mousetrap.blogspot.com/2013/09/09152013-rotation-selling-caj-buying-flr.html[/url]

Rotation: selling CAJ; buying FLR.

FLR is in the Engineering and Construction industry, but the depressed price comes primarily from the weakness in the mining industry (which Fluor has a part in). As such, this is partially related to my ABX investment.

No more for this post, though. I’m working on another report detailing exactly why penny stocks won’t even leave you with pennies…

In any case, this trade may not be possible tomorrow, with the Summers-exit relief rally in the morning. We’ll see. If CAJ gaps better than FLR, the trade is on. If not, then I’ll have to hold.

Tim

PS on the Sector Model. I’ve been stating in previous posts that I planned to only hold one of these stocks at a time and ignore all whipsaws. In practice, however, I’ve mostly still been holding both. The hardest thing to DO in the market is “nothing,” and staying out of any position is psychologically difficult to pull off. A good lesson for those siren calls NOT falling in line with the model.