QG Fund Update: Weeks That Make You Want To Give Up

quit

This was another really bad week for the QG Fund. The kind of week that makes you really want to throw in the towel.

Despite the fact that I was watching things play out from a beach house in Cape Cod, I felt sick to my stomach as the equity of the QG Fund disappeared this week.

There is no way for traders to avoid these types of weeks. If you are looking to outperform the market, you are going to have to take on risk, and there will be times that those risks bite you in the ass. It happens.

What you have to remember during the tough times, is that times like these are exactly why you have a system in place. This market is crazy, the bottom should, and probably will fall out at any minute, and there is no telling what will happen when the government stops printing money.

None of us have any basis for predicting what will happen next. That means that we need to have a good system in place that can handle whatever does happen.

This week, the QG Fund began to remove itself from the market. If conditions continue to worsen, it will continue to remove itself. If conditions improve, the QG Fund will add new positions.

This is my advantage over the general market. I have to embrace it.

Overall Performance

The QG Fund now has an overall value of $103,712.46, which represents a positive return of 3.71% on the year. For comparison, the S&P 500 currently has a return of 5.44% on the year. So much for my growing lead.

Since the big changes in the fund on March 30 of this year, the QG Fund is up 9.46%. The S&P 500 is only up 3.16% over that same time period, so things still look good from that perspective.

Here is what each of the individual holdings look like this weekend:

qgholdings080914

Entries & Exits

There were three exits triggered this week, and each of them was triggered on Thursday and executed on Friday morning.

SHPG was sold at 232.79 for a gain of 33.68%. It was purchased on 4/21/14 at 174.14.

AGN was sold at 153.59 for a gain of 14.46%. It was purchased on 4/21/14 at 134.19.

FANG was sold at 77.03 for a loss of 5.37%. It was purchased on 6/9/14 at 81.40.

This leaves us with a total of 8 remaining positions. Of those, five are full positions and three are half positions. Together, they account for 6.5 of our ten full position target, which means we can now take on up to three new positions.

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

qgscan-080914

Out of the four stocks that the scan returns, only one passes our HV filter, and that one doesn’t meet our ROC requirement. It is also already owned by the QG Fund.

That means that once again, there are no possible new positions for the QG Fund this week. If the market continues to deteriorate, we will likely see this trend continue. Time will tell.

Photo Credit: Jillian Corinne via Compfight cc