LunaticTrader

Investing with the Moon

Outlook June 14

Posted by Danny on June 14, 2010

Another roller coaster week with the Nasdaq ending on a positive note.
We have a few more days to go in this Green period, so look for a bit more upside.
But the next Red period is looming, so I would use any up days this week to lighten up on positions. We only got a flat market in the current Green period, which suggests further weakness ahead.

***

Meanwhile we have started a little experiment with test portfolios on tickerspy.com
We will try to do better than the S&P500 benchmark in the longer term.
Portfolio 1 uses only stocks taken from the S&P 500 Index.
Portfolio 2 is chosen from the Nasdaq Composite.

Each selection starts with 10 stocks that are randomly chosen.
Towards the end of each Green period we will remove the stock that has the worst 1 month performance, and go to 10% cash (invested in SHY).
At the end of each Red Period will add a new randomly picked stock to get us back to 10 stocks in the portfolio.
In this way we try to get rid of lagging stocks and hold on to the winners.
Using the lunar cycles we try to do our buying and selling at more opportune moments.
We will see how this works out.
You can follow our test portfolios here:

http://www.tickerspy.com/portfolio.php?pid=112814

http://www.tickerspy.com/portfolio.php?pid=112817

Good Luck,   Danny

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