Stocks closed out a very bullish week with semi-moderate losses on Friday. The DJIA and RUT led the way to the downside but volume was lower across the board which means that institutional investors were not dumping stocks following the move into new high ground on the Russell 2000 and the Nasdaq. Internally, the action wasn’t that great but my personal holdings did very well and intraday only one stock hit a partial sell stop and by the EOD that stock was higher.

As I stated Thursday evening, everything is working beautifully. All of my long positions that are currently in my portfolios are higher or have extremely tiny losses right now and those with tiny losses are still above final cut loss levels. On top of that, there is not one single holding that looks to be in any short-term danger of rolling over. While it definitely could happen there are zero setups that indicate this is on the horizon.

Instead I continue to see stocks consolidate in rounding or flat trading fashion and/or continue to see stocks breaking out to new highs. A lot of stocks that I have even flagged as potential shorts like REN and CRBP are having a tough time selling off from their recent highs. Scan after scan that I go through continues to confirm the strength in the overall market. This can be easily seen in the NYSE ADV/DEC line. The NYSE ADV/DEC line hit a new 52-week high (using IBD’s data) this week while the NYSE and SPX still have not. That is called positive divergence.

Another interesting situation that developed this week was on the sentiment side. The AAII survey came out with bulls falling to 25% while bears rose to 38% and the Investors Intelligence survey came out with bulls falling to 45% while bears rose to 24%. All the while the Nasdaq, Nasdaq 100, and Russell 2000 hit new highs this week. If this is not one of the most unloved new highs in the stock market, it is at least one of the most unloved new highs I have been a part of since I started my journey in 1996.

I am going to keep it as simple as possible. As long as this market is trending higher, I will just continue to take new long signals as they trigger. I am not going to chase any names and instead will continue to manage my current winning positions and look to only take new long positions where everything to almost-everything lines up. This weekend there is one name that fits the bill. It is a CANSLIM quality name with some pretty steady EPS and sales growth that is producing a pocket pivot point signal right around its 5, 10, and 20 DMA. This stock is listed on the New Positions page.

There is not much else to say here other than to make sure you are raising your stops as your stocks continue to make higher highs. Make sure your stops are exactly at the support levels you want them to be. You don’t want a sudden market reversal to catch you off guard. I am holding a lot of positions right now so this is very critical for me personally. I can’t remember the last time I have made a clerical error on my end in regards to managing my stops but I know I have not made one since Brexit. I plan on keeping it that way. It would not surprise me if we continue to trade in a choppy manner here as we head into October. Be prepared. Trade well. Aloha.

Top Current Holdings – Percent Gain Since Signal Date – Signal Date

CLR long – +145% – 2/11/16
EBIO long – +127% – 5/26/16
AERI long – +111% – 8/9/16
GRAM long – +100% – 4/1/16
MIME long – +58% – 7/8/16
HBP long – +54% – 3/28/16
SIMO long – +46% – 3/11/16
AOSL long – +44% – 6/14/16
EBIX long – +42% – 3/17/16
QLYS long – +40% – 5/12/16
SSTK long – +39% – 7/6/16
APLP long – +35% – 3/31/16
FN long – +34% – 4/25/16
HEAR long – +33% – 9/1/16
CYBE long – +32% – 8/3/16
ABMD long – +32% – 3/29/16
GENC long – +30% – 2/26/16