QG Fund Update: Greedy When Everyone Is Fearful

greed

greedI forget who originally said it, but it was probably Livermore who said that you should be fearful when everyone else is greedy and greedy when everyone else is fearful. I’m not very good at that.┬áThe DTAYS Quantitative Growth Fund seems to be great at it.

After the way this past week ended, the market looks treacherous. As if the bottom could fall out ay any minute, leaving us tumbling towards another epic crash. However, the QG Fund’s trend indicator is still positive, so the fund is pushing forward. It doesn’t have feelings like you and I do. Hopefully that roved to be a good thing.

Overall Performance

The Quantitative Growth Fund currently has a net asset value of $96,157.81, which represents a loss of 3.84% on the year. For a point of comparison, the S&P 500 is up 2.12% on the year.

Here is what the current holdings look like this weekend:

qgholdings-051714

Exits & Entries

It looked like we were going to see an exit signal in SAVE for most of the day on Thursday. Then, the stock rallied to close above its 5-ATR line. However, it opened lower Friday and spent the entire day below the line. That means that we have our sell order already placed for Monday morning.

On the buy side, the SPY is still sitting about its 100-day SMA, so the fund is still looking for new positions. Counting SAVE, there is capital tied up in 4 full size positions and 4 half sized positions. That means we have four empty slots available for new buys.

Here is what our scan for new 20-week highs on this weekend’s IBD 50 returned:

qgscan-051714

We can ignore TRN, because it is already owned by the QG fund. We can also ignore FL, UNP, and ODFL because they all fall below the minimum required ROC. That leaves us with HDB as the only stock that qualifies for a new entry this weekend.

The QG Fund has about $37,000 in cash available to allocate to its four empty positions, so that would make each individual position about $9200.