5-3-12 Close Comments

[Mike]

Today was not a good day in the market. The morning started with VRX breaking out and then it quickly got hit by a large wave of selling. The NASDAQ closed below both the 21-day ema and 50 day moving average giving us two market sell signals (S5 and S9). This reduces our exposure count to +1 (30% invested). This is a large move down from going in at 75% this morning. I sold FRAN and URI in my own portfolio but I am still over subscribed with the remaining stocks: ISRG, LNKD, KORS and FET. My LNKD position is a 30% position so I will either sell all other positions tomorrow or half of LNKD and some of the others. LNKD reported after hours and has popped up 8%.

[brrim]

Mike; Does this model ever go short? If it does what are the criteria?
Thank you.
Best regards,
Robert

[brrim]

Mike; Please ignore my question. I found the PowerPoint.
Robert

[Mike]

Mike; Does this model ever go short? If it does what are the criteria?
Thank you.
Best regards,
Robert

Robert,

The model does not go short currently. There is some thinking to take it in that direction. If it did go short you might be amazed to see that it would sometimes be long and short at the same time. Often the best time to short is when the market is topping and you are still long in some positions.