1st Quarter Review – 2014

SYNOPSIS
Last week’s results were quite positive in spite of Friday’s sell off in momentum stocks. Since up-trending = high momentum, that means those of us still holding. There will always be set-backs like this from time to time. We’ve just got to roll with the punches, and keep a rigorous approach to handling losses in place.

Trading Activity… There was more selling in the ProfiTrend Portfolio this past week. The annualized growth rate for the PTP is at 108%… still quite respectable. That compares with AGRs of 20% for the S&P 500 and 23% for the S&P/TSX Composite Index companies.

We’ve been selling stocks gradually over the past two weeks in the ProfiTrend Portfolio with our standard sell signals, so it’s not like Thursday and Friday suddenly came out of nowhere. The beauty of relative trend analysis™ (RTA) is that our signals take us out of the markets (when necessary) in a systematic fashion. There are rarely any sudden surprises.

Topic of the Week… 1st Quarter Review – 2014

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Seasonality… We have Brooke Thackray’s videos for April this week. We don’t recommend investing based solely on calendar effects, but an alignment of our own buying preferences and the probability boost from seasonality can’t hurt.

Video of the Week… Michael Lewis’ latest book, Flash Boys, has created quite a stir in the Wall Street community. It explores the world of high-frequency trading to separate legitimate advantages of the technology from applications that would be illegal if human traders were doing exactly the same thing. We actually bring you two videos… a more sympathetic discuss between Michael Lewis and The Daily Show’s Jon Stewart, and a more adversarial interview with Bloomberg TV.

State Street Investor Confidence Index… The latest data for March are still posted. The institutional investors continue to favour risk (stocks) over safety (bonds), while being unfazed by the US attempt to create another Cold War. Apparently, those managing multi-billion dollar accounts ignore the media as much as we do!