QG Fund Update: First New Entry in Months!

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Based on the way that last week finished up, it was pretty reasonable to assume that the market would bounce back this week. This was particularly the case for growth stocks, which had been beaten up pretty bad last week. This week, things looked a lot better.

Once again, we are seeing the virtue of not panicking. As a discretionary trader, I was prone to jumping in and out of the market far too often. It is easy to be swayed by the media, the twitterverse, or our own crazy minds.

Too easy. Which is why I have found great comfort is subscribing to a purely systematic strategy that allows me to turn the thinking off and simply follow the rules. Here is what the QG fund looks like this weekend:

Overall Performance

The QG Fund currently has a value of $106,663.11, which represents a gain of 6.66% on the year. That’s ominous. For comparison, the S&P 500 is now up 6.72% on the year.

The fund suffered a bit as it was fully invested when the market dipped last week and then was a few stocks lighter for the rebound this week. That’s ok though. It’s part of the system, and we would be patting ourselves on the back if the market dropped again this week.

Since we made our big changes at the end of Q1, the QG Fund is up 12.57% compared to 4.42% for the S&P 500.

Here is what the individual holdings look like this weekend:

qgholdings081614

Entries & Exits

This was a pretty strong week for the QG Fund, so there were no exit signals to worry about. Since the SPY is still hanging out above its 100-day moving average, we are looking for new entry opportunities this weekend.

Here is what a scan of this weekend’s IBD 50 returns for stocks making new 20-week highs:

qgscan081614

The scan returned seven stocks this weekend. The top three stocks are all going to be rejected by out Historical Volatility filter, and the bottom two are not going to meet our ROC requirement. That leaves us with CAR and GILD as the only possible new entries this weekend. Since the QG Fund already owns CAR, we are left with just GILD as a new entry.

The QG Fund currently has just over $36,000 in cash to be allocated to the 3.5 open positions. That works out to about $10,297.72 for our new position in GILD. I have place the order to buy as many shares as that amount will get us on Monday morning.

Photo Credit: Bruce Guenter