It was all about the jobs report on Friday and the actual report was exactly what Wall Street was looking for as stocks started off the day with a gap and go move higher. The strong start to the day gave way to some selling but before the market could go red on the day buyers stepped in and helped support stock averages at their mid day lows. Stocks then rallied for the rest of the session into the close for a very respectable showing on the day. Stocks did not close at their highs of the day but the move off the lows was solid with good overall breadth and only one of my personal holdings hitting any stops intraday. Overall, a pretty darn solid session.

I am extremely happy with the gains and overall price action on Friday as my holdings did absolutely wonderful compared to the overall market. Even most of my hedges are holding above key support levels which will allow me to leave most of these vehicles with either tiny gains, flat, or with extremely tiny losses if they decide to fail here. When all of my holdings are displaying such positive price action it is hard to find much fault with the current market environment. However, that is my job, so I will.

Stock indexes are still in a full-on rollover mode in every single one of my intermediate term oscillators that I follow on the RUT, COMPQ, NDX, DIA, SPX, and DJT. The mere fact that my oscillators are heading lower with strong velocity and are nowhere near extreme oversold levels is a huge caution (Yellow) flag against new long positions and an overall bullish bias towards the general market. That being said, the major averages continue to hold up extremely well during this period and new long positions continue to trigger and continue to work. A couple have failed where none were failing earlier. Still the vast majority are still succeeding, right now.

When my new long positions start failing immediately and my current long positions start hitting partial/final sell stop levels, I will become more concerned and will look to protect profits more quickly. However, as of right now, the overall market weakness is just something I want to monitor and be ready to act upon if it does indeed becomes worse. I like to keep it simple. As long as new long positions and current holdings continue to move up, I am going to continue to operate on the long side. When they stop working, I’ll stop going long.

All of our operational models are still under a full-on BUY signals so downtrending oscillators or not I will just continue to obey the signals until the distribution days turn our operational models into NEUTRAL or SELL signals. With the Russell 200 at new 2016 highs it should be no surprise that I do have two long signals this weekend. On top of these two new long signals there were, once again, a flurry of potential long signals that either did not make my final cut or barely missed my final cut. As of right now, with my portfolios being fully invested, I am only interested in taking trades that I believe offer me over a 3-to-1 reward-to-risk ratio. Anything that I feel is less than that I am going to pass on. I also want to make sure the price and moving averages are completely lined up. If the price of a stock (not ETF) isn’t touching the 10 or 20 DMA, I am automatically passing on it.

If you would like to check out the two new long positions and take a free two week trial you can sign up here. Have a wonderful rest of your long three-day holiday weekend. I have a feeling the quiet trading is going to slowly give way to heavier and heavier volume when we return. Remember, September is historically the worst month of the year for stocks and we have all of our oscillators racing to oversold levels in the major market averages. If the trend in selling starts to pick up, it could get ugly real fast. Just something to keep in mind as we head into the new trading week. Trade well everyone. Aloha.

TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – SIGNAL DATE

EBIO long – +255% – 5/26/16
CLR long – +168% – 2/11/16
GRAM long – +96% – 4/1/16
MIME long – +68% – 7/8/16
HBP long – +62% – 3/28/16
SIMO long – +56% – 3/11/16
AOSL long – +50% – 6/14/16
EBIX long – +45% – 3/17/16
GGB long – +38% – 7/13/16
ALRM long – +36% – 3/1/16
GBR long – +36% – 8/11/16
QLYS long – +34% – 5/12/16
OLLI long – +32% – 2/24/16
GENC long – +30% – 2/26/16
PATK long – +29% – 5/20/16