The Market Top is Here! Get Out Now!

mountainskier

Just kidding.

Look, it was a shitty week. It happens.

The SPY is still WAY above its 10-day moving average. It also recovered from its lows on Thursday and then put in a nice gain on Friday.

The beauty of the QG Fund is that even if I really did think that the market was topping out, my opinion doesn’t have any influence on the fund. It just follows rules that have a proven track record.

It’s not very glamorous to write about how irrelevant my opinion is, but it is incredibly liberating while trading.

Overall Performance

After the big hit the QG Fund took early in the week, it recovered to finish with a value of $105,750.66. That means that the fund is up 5.75% on the year, compared to 7.4% for the S&P 500.

While the QG Fund didn’t hold its ground for long after matching the S&P last week, there is no reason it can’t jump right back up in the coming weeks. It also has an ace in the hole by having an escape policy that allows the fund to go to cash if the market should really collapse.

Here are what the individual holdings look like this weekend:

qgholdings-071214

Entries & Exits

One of the main reasons that I don’t see any reason to panic is that none of the current holdings produced a sell signal this week. Because the SPY is still well above its 100-day moving average, the QG Fund is actually still in buy mode, so I guess you could say it’s looking to “Buy the Dips!”

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

qgscan-071214

As you might have expected, there were only four stocks that came back in this weekend’s scan. Of those four, only two meet our ROC requirement and neither of those falls below our HV requirement.

That means that there are no new potential entries for the QG Fund. This is the first time this has happened in quite a while. It could be a sign of things to come, or it could just be a shitty week. Time will tell, but I will stick to trading my rules rather than my opinions.

 

Photo Credit: Massmo Relsig via Compfight cc