QG Fund Update: How To Avoid The Noise


This was a really wild week for the stock market. Monday and Tuesday were gross, then we got a big rebound on Wednesday. Thursday opened way down again, but finished strong. That strong finish continued on Friday.

If you are taking the time to read the stuff I write here, you probably aren’t the type of person who is looking to trade based on the nonsense you see on TV. But on crazy weeks like this, even the best of us can get caught up in the noise.

If you were reading my twitter feed on Tuesday night, you would have been thoroughly convinced that the world was coming to an end…..soon. But if you read my twitter feed on Wednesday night, you’d have thought that we were about to party like it was 1999.

Looking back on the past week, the important takeaway is that neither extreme was a profitable trading position. The people who did the best job handling this crazy week were the ones who focused on their strategy and ignored the news.

Once again, as my friend Larry Tentarelli loves to remind us, PRICE is the only thing that matters.

Overall Performance

After all the dust settled this week, the QG Fund had a value of $105,239.97. This represents a positive return of 5.24% for the year.

The S&P 500 is sitting on a return of 7.04% for the year, so the QG Fund is hanging tough and staying right with it after closing the gap over the past few weeks.

Here is what the individual holdings look like this weekend:


Entries & Exits

There were no exits signaled this week, and the QG Fund is still maxed out holding 9.5 of a possible 10 positions, so once again there wasn’t a whole lot to do in terms of managing the fund.

If we were looking to add new positions, here is what a scan of this weekend’s IBD 50 for new 20-week highs would have produced:


Of the eight stocks that made the cut this week, half are going to be eliminated by our Rate of Change requirement. That leaves us with LAD, CLR, AKRX, and FL. Each of these stocks also pass the Historical Volatility requirement.

The QG Fund already owns CLR, but the other three would be new additions to the fund, if there were room for new additions.

In the coming week, anything could happen. I don’t have any business predicting what might happen, but neither do you or anyone else. The best we can do is see what happens and have a plan to act accordingly. That’s my plan. What’s yours?

Photo Credit: Peter Fuchs via Compfight cc