Power Dip Week in Review

For the week, the Power Dip was up 1.06%, while the SPY was up 4.65%.

The system had a few trades this past week where performance was impacted significantly. First, [[CHIP]] was stopped out on Monday. On Tuesday, CHIP still met the buy criteria, and so it was again purchased, only to stop out again on the same day it was purchased. That was a quick 2K+! And on Wednesday, CHIP was again selected, but I did not take the trade, for what should be obvious reasons. The decision was faulty, from a system trading perspective, but lucky, in hindsight. It turns out there was some news was released, and CHIP gapped way up, and then closed down, and would have once again stopped out. Those three trades would have cost the system over 3%. Since only two were taken, it cost the system just over 2%.

On Friday something happened with Pier 1 Imports, Inc. [[PIR]] . It was up in the pre-market. Since I had published the sell signal already, I used the opening price in the spreadsheet, but I would expect that anyone trading the system in real-time might have chosen to sell later due to the obvious interest in the pre-market. That would have been a wise decision as PIR closed up 16%.

The system is long three stocks: Gray Television, Inc. [[GTN]] , [[KERX]] , and Flowers Foods, Inc. [[FLO]] . On Monday’s open, KERX will be sold. New positions will be scarce until the market pulls back a bit.

The spreadsheet has gotten too big for WordPress, and so only the system statistics and October trades are shown. The equity curve is trade-by-trade, rather than each day’s closing equity amount, just in case anyone was wondering. It doesn’t really matter since it is hindsight, but if not for back-to-back CHIP stop outs and selling PIR on the open rather than on the close, the system would be very near hitting new highs. Perhaps the system will have a little good luck this week to even out this past week’s mediocre performance.