Sunday, March 18, 2012

Time to Follow the Box Rules

I have not mentioned the Box Theory lately….have not had much in the way of gain to deal with except for Apple and it has been such a nice smooth ride. Well now Priceline is off to the races, so I will start posting a modified version of Box Theory for these nice gainers
I will also stop listing the profits of each buy but rather the total cumulative gain, the number of buys and a “box number”, which will be a modified version of the Box Theory . The number in the box will be the gain above 15% (or multiples of 15%) that is in the “bank”. When the number in the box rises to 15 % the bank will rise and the box starts over at zero. When it drops to -8% the stock will be sold…perhaps -15% will be used for some stocks. I know this may seem meaningless, but it should make sense when some drops occur
I did buy EWH (Hong Kong) and EWY (South Korea) and more AAPL, on the day after it hit the ceiling of 600 and tumbled a little. (I sold the SPY to pay for it). But I am still trying to be very cautious until November.

So what did I see in my weekend review?

The 10-yr Treasury yield has popped up to 2.3%

IBD (Investor Business Daily) continues: Market in Confirmed Up Trend.

Copernicus Systems is still showing to be long in the market (but not 100% in all systems). Money Flows up this week in 2 out of 3 portfolios….a nice sign.

IBD 50 Top Five: AAPL, ALXN, LULU, GNC, KORS. This week GNC has entered the top 5 at the expense of ULTA, which I would have thought to be the better stock, will keep watching, perhaps ULTR will re-enter. Nice to see AAPL grab the top rung as it should.

What will I do?

Watching DIA, QQQ and a fav QLD…which is smoking hot

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

AAPL  (4) buys for +33.10 so (2) in the bank and in the box 3.1
JBL  +3.15
PCLN +15.47 so (1) in the bank and in the box .47

ETF’s for a trade are:

GLD (3) buys for -2.13
IBB   (2) buys for 2.72
EEM 1.62 (Watching)
EWZ -.63 (Watching)
EWH 1.73 …nice start
EWY 2.1 …Bravo!

I hope you have a great week.

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