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)

[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)


Attachment 13981

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