Sunday, March 04, 2007

Collective2 update

I use my Collective2 portfolio has a "real world" example of using the stocks featured in my newsletter and blog in combination with a suggested money management strategy. I have marked on the hashed line - which represents the S&P - the degree of market exposure as recommended to my newsletter Subscribers. The solid line reflects the returns of my picks with a little extra fine tuning to my suggested stop prices (all trades carry a fixed stop price).

I was looking for aggressive positions last summer when market internals were oversold, easing those recommendations towards a cash conservative stance in mid-November. The flattening of the equity curve and the small losses taken in December and February represented this 'cash-friendly' portfolio - which also meant I missed out on the Santa-rally and New Year follow up. The flip side was no impact from last weeks sell off.

I'm watching currently watching internals for new oversold conditions and an opportunity to go more aggressive into stocks.

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