Friday, July 14, 2006

Collective2: NAVR out

The second wind of stocks is suffering the same fate as the first. I will wait before adding a third batch until some of the heat is taken out of the market. It has been a rough ride for Breakouts with little in the way of leadership coming forward to drive a rally. Market internals remain oversold, but there is nothing to say these can't head lower.

Altogether, the last couple of months have trimmed around -$3K off the Collective2 balance with only a handful of stocks able to push gains. NAVR was the latest victim, losing -$700 from a 2,000 share lot (-7.0%) as the 200-day and 20-day MAs gave way. Five stocks remain in the portfolio with the remainder of the balance in cash (about 55% cash).