QG Fund Update: Still Not Overreacting


You know the crazy guy on just about every sitcom that overreacts to just about everything? Don’t be that guy.

This seems like about the eighth week in a row that I have sat down to write the QG Fund Update on a Saturday night and wondered why everyone was either panicking or jumping up and down screaming about going to the moon. Everyone needs to relax.

This past week was pretty much the exact opposite of the previous week. Things went higher and higher all week, but then shit got painful on Friday and people started to freak out.

As much as we would all believe that markets top out that quickly, it just isn’t true. While high frequency trading is all the rage right now, long-term trends are the proven money makers. There is decades of evidence to back that up.

I used to be one of the people who overreacted when things got serious. I’m proud to say that I have gotten to a point where that is no longer the case.

My biggest concern Friday was not the fate of the market. It was how on earth I was going to pick a new office chair from the 50+ on display at Staples. Big difference.

Overall Performance

After all the apparent craziness that happened on Friday, the QG Fund is sitting at a value of $108,476.54 this weekend. That means it only dropped $312.30 this week…….definitely not the end of the world.

For the year, the fund is up 8.48%, which is better than the S&P 500’s 7.99%. Since the current version of QG Fund rules were established on March 30 of this year, the fund is up 14.49%, compared to 5.66% for the S&P 500 during that time.

Here is what the individual holdings look like this weekend:


Entries & Exits

As you can see, there were no exits again this week, although AFSI is really starting to flirt with crossing through its 5-ATR stop line. If that happens in the coming week I will close out the position.

Since the fund didn’t have any new exits, it still doesn’t have room for new positions. Which is good, because there wouldn’t be any this week anyways.

Here is what a scan of this weekend’s IBD 50 would return for new 20-week highs:


As you can see, there are quite a few new 20-week highs, but nine fo them don’t pass the ROC filter, and the other two don’t pass the HV filter, so none qualify as new QG positions.

Trading the QG Fund in the coming week will probably be a lot like it has been over the past few weeks…..lots of sitting……and lots of waiting. It might sound boring, but trust me, it’s way more fun than losing money gambling on penny stocks!

Photo Credit: Luke Hardcastle Photography via Compfight cc