Small Portfolio XLF & IAU 16.21%

Position Date Return Days
BT 1/4/2012 18.09% 247
DECK 6/15/2012 -1.56% 84
CVX 7/5/2012 6.11% 64
RIMM 7/16/2012 -7.31% 53
UEIC 7/30/2012 18.85% 39
QSII 8/6/2012 11.20% 32
SWM 8/23/2012 2.05% 15
FCX 8/27/2012 0.58% 11
DWA 9/4/2012 3.24% 3
CAJ 9/5/2012 -0.74% 2

S&P Annualized 5.08%
Small Portfolio Annualized 12.73%
Large Portfolio Annualized 14.97%

From: http://market-mousetrap.blogspot.com...uying-dvn.html

Yet another rotation. Should slow down after this one:

The model is selling BT, and buying DVN.

As always, a negative divergence tomorrow would cancel the trade.

Also, this is now the second trade in a new sell rule for the model. Sells were based on technical considerations alone before, and are now based on a combination of technical and fundamental values.

This should prevent incidents where TTM had to decline from +70% to +20% before it was sold, and should also prevent selling CECO the other day, only to watch it recover most of its losses in the next two days. Models are always something to be fine tuned – but never curve fitted.

Tim