Sorry for the long abscence. Life got busy and since this is something I do on the side, well it gets kicked to the back burner first.
Gold (XGLD) took off and topped out at $1422 stayed up a couple days then promptly fell back to the $1368-$1380 range. Again I am looking for Gold to remain range bound between $1350 and $1425 for a while. Gold is continuing to build a good foundation with higher lows in the current range. I would expect a break above $1425 to led to prices in the $1500-$1600 range ($1500-$1550 for sure). A break above $1425 is not confirmed until Gold has topped the value for 2 out of 3 days and exceeds $15-$25 above $1425.
Annaly (NLY) broke down and has recovered back to the $17.75 area. I am looking at this stock to hold a tight range between $17.50 and $18.00 based on interest rates in the US. As long as the Fed continues to loan money out at near 0% and mortgage rates continue to increase Annaly is in a prime position to continue to profit. However, I would keep eyes out for any quick movements to the downside and be ready to lock in profits and previous dividend payments.
Compass Diversified (CODI) came back strong and is currently trading around $18.40. Looking at short term technical indicators I would not be surprised if we see some topping action in the next week or so. This is another great diversified high dividend paying stock. I would look to get out at $16.00 to protect profits and previously paid dividends. To be super cautious would be to get out around $17.25.
I am looking at setting up and following a portfolio of stocks based on the caveat "new Highs create more new Highs" or "A stock that sets a new high, has the tendency to continue setting new highs". The portfolio will use Telechart 2000's Morningstar Industry Indexes. Sorting these indexes by highest percent gain in past 30 days. The portfolio will purchase the top stock in each of the top 10 Industry Index, again defining the top stock in the industry segment as being the stock with the highest percentage increase over the past 30 days. Additionally, we will limit our picks to stocks that trade at a minimum price of $10.00 or higher. We will also consider volume to insure that there is enough shares exchanged to be able to establish positions. I am going to follow this for the next month or two to see how it goes and if the results look promising I will post the original portfolio plus all the transactions. After that, I will probably provide a monthly update if it is going well.
As normal Standard Disclaimer Applies.