Power Dip Setups at One Year Low

Dip buying when the market is continuing to fall requires confidence. I would not continue to dip-buy into a multi-month market collapse. One of the things I like about PDS is that when the market gets weak enough, the system will quit giving signals. The reason for this is simple. Since the system only buys stocks in an uptrend, a market that falls long enough will eventually erase most if not all uptrends.

Currently, the number of stocks in an uptrend (as quantified by the system) is 131. This metric has not seen such low levels since the summer of 2010.

We are looking at the bottom pane of the chart. This metric has also been a fairly good at marking bottoms.

Notice that beginning in 2008, the number of PDS setups was fewer than 100. It does build up slowly to almost 500, but then as the market begins to fall away again in June, the number of setups get fewer and fewer until on October 10th, 2008, there were only 17 stocks in an uptrend. Keep in mind that just because it is in an uptrend doesn’t mean that the system will buy it. It has to dip first, and when it does, it must not violate other criteria in order to count as a true Power Dip.

If the market continues to slide here, PDS will be issuing very very few picks, and subscribers will be mostly in cash. If the market stabilizes or bounces, the number of picks will climb. Either way, knowing this gives me the confidence to keep buying dips, even as the market is falling.

Power Dip YTD- Positive For the Year

My little swing trading system has suffered for part of this year but appears to have weathered the worst of the drawdown. In fact, my post about taking the system to the doctor damn near marked the bottom of the drawdown for the more aggressive models.

The 10% of Equity per Trade model has been in the black for over a week now (see the YTD equity curve below), and the other models are flirting with going positive for the year. Their metrics, specifically the percentage of winning trades, are still sitting beneath their historical averages. I maintain that they will eventually return to their means, or better.

Here are the Year-to-Date results.

20% of Equity per Trade

Net % Profit: -1.76%

Annualized: -4.23%

Average Trade: -0.04%

Winning %: 60.81%

———————————————

10% of Equity per Trade

Net % Profit: +0.97%

Annualized: +2.38%

Average Trade: +0.12%

Winning %: 63.50%

———————————————

ATR Position Sizing

Net % Profit: -1.03%

Annualized: -2.49%

Average Trade: -1.10%

Winning %: 61.70%

.01/share was included for commissions.

To see more information about historical backtested results of the system, you can take the free trial, or feel free to leave a comment in the comments section.

YTD Equity Curve for 10% of Equity per Trade Model:


The Daily Dip Subscriber Email

Every evening PDS subscribers receive an email, “The Daily Dip” which details the stocks sold that day, lists the open positions to be closed the next day, and lists any new positions for the next open.

Last night’s email was particularly nice since the system closed many winning trades and is scheduled to closed more today. The text of the email is below.

————————————————————————————————

Here’s a quick summary of today’s action:

The following positions were sold today at the closing bell:
Sold AHT for a 9.48% gain.
Sold CE for a 9.48% gain.
Sold NUAN for a 7.94% gain.
Sold NUAN for a 7.56% gain.
Sold CYOU for a 7.03% gain.
Sold MICC for a 5.36% gain.
Sold OMEX for a 4.84% gain.
Sold AIT for a 4.65% gain.
Sold UTIW for a 4.60% gain.
Sold IR for a 4.31% gain.
Sold IEX for a 3.13% gain.
Sold IJK for a 3.06% gain.
Sold IWP for a 3.05% gain.
Sold RGLD for a 3.02% gain.
Sold AIT for a 3.01% gain.
Sold EBAY for a 2.82% gain.
Sold STX for a 2.72% gain.
Sold BAS for a 2.69% gain.
Sold APD for a 2.30% gain.
Sold IWS for a 2.27% gain.
Sold FLIR for a 2.13% gain.
Sold DVY for a 1.61% gain.
Sold AWP for a 1.53% gain.
Sold TQQQ for a 1.49% gain.
Sold PNR for a 1.39% gain.
Sold IRWD for a 1.36% gain.
Sold IWP for a 1.33% gain.
Sold ECL for a 1.25% gain.
Sold WAT for a 1.21% gain.
Sold TYH for a 1.16% gain.
Sold QLD for a 1.06% gain.
Sold EROC for a 1.04% gain.
Sold RSP for a 1.01% gain.
Sold FAST for a 0.99% gain.
Sold VUG for a 0.90% gain.
Sold SDY for a 0.78% gain.
Sold IWF for a 0.76% gain.
Sold IVW for a 0.70% gain.
Sold STX for a 0.68% gain.
Sold XLK for a 0.64% gain.
Sold STX for a 0.51% gain.
Sold XLI for a 0.42% gain.
Sold BAS for a 0.11% gain.
Sold EROC for a -3.78% loss.
Sold MILL for a -6.32% loss.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
SLH
DRN
ROIAK
EQY
WWD
BMR
NWS
YSI
URE
TKR
WTI
MAC
AIV
NGG
WWD
GGP
CUZ
FMBI
VNO
CAR
DEI
ALV
EQR
PENN
UPRO
RWR
ICF
VNQ
WTI
SIAL
IYR
EWG
HIW
BBBY
TDC
COF
GWW
PENN
CMCSK
PSO
CMCSA
SSO
XHB
HIW
CLI
CA
DDM
EMC
EWD
SI
SCHB
GRM
IWB
DHR
MYL
SPY
IVV
DIA
VTV
SLGN
AME
WM
DEI
DRH
PENN
HRL
COF
RWX
SNA
EWG
GME

No new picks were generated tonight.

-The Power Dip Team

Top Ranked Picks Closed for Outsized Gains

Excuse me while I share some recent successes.

Yesterday, PDS closed GENE for a huge gain. GENE was the top-ranked pick for 2.1.11

Today, PDS closed HILL for an out-sized gain. Hill was the top pick on 2.2.11

CIEN was also closed today, for another big gain. CIEN was ranked 4 out of 14 picks on 1.21.11

Have a great weekend!

Power Dip Closes 26 Winning Trades

I’m not much of a braggart, but from time to time I think it is appropriate to highlight PDS 2.0, especially when it is performing exceptionally well. Also, a commenter was wondering how the positions fared that were scheduled yesterday to be closed today. They all closed in the green.

Below is the text of the email that subscribers received tonight. I removed the new buy for tomorrow.

———————————————————————————————————————————————–

Here’s a quick summary of today’s action:
The following positions were sold today at the closing bell:
Sold HS for a 12.50% gain.
Sold HS for a 11.85% gain.
Sold SKH for a 5.28% gain.
Sold AIXG for a 4.97% gain.
Sold ULTA for a 4.78% gain.
Sold ONNN for a 4.70% gain.
Sold KEM for a 4.61% gain.
Sold F for a 4.45% gain.
Sold UNT for a 4.07% gain.
Sold FSS for a 3.66% gain.
Sold VRNT for a 3.63% gain.
Sold WYNN for a 3.60% gain.
Sold VRNT for a 2.81% gain.
Sold RBN for a 2.80% gain.
Sold WYNN for a 2.74% gain.
Sold CALD for a 2.68% gain.
Sold OSK for a 2.52% gain.
Sold UNT for a 2.25% gain.
Sold RBN for a 1.47% gain.
Sold CIE for a 1.23% gain.
Sold NE for a 1.19% gain.
Sold GTE for a 1.09% gain.
Sold CYBX for a 0.80% gain.
Sold PL for a 0.78% gain.
Sold CYBX for a 0.65% gain.
Sold BRNC for a 0.58% gain.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
MGA
MGA
NUAN
HYC
HYC
MRVL
MRVL
UNP
PAY
SNCR
BCSI

The following stocks were identified tonight as new buys, to be bought at tomorrow’s open:
XXXX

-The Power Dip Team

Power Dip Winship Continues

The 2% Risk, 3 ATR Model¹ is up 6.36% YTD, including commissions of .01/share.

20% Equity per trade model is up 5.12% YTD, including commissions of .01/share.

Despite continued calls from the financial nose machine to short this market, PDS 2.0 has stayed long. Here are some trades that were closed today.

Even Le Fly got long OPEN on the day PDS 2.0 selected it for buying…

Subscribers received the email below this evening. Note all the trades to be closed tomorrow. Most will be closed profitably. The new delayed exit makes the system easily traded by folks who work and can only place orders after the market has closed or before it has opened.

————————————————————————————–

Here’s a quick summary of today’s action:
The following positions were sold today at the closing bell:
Sold NAV for a 7.91% gain.
Sold AUDC for a 6.32% gain.
Sold CSX for a 4.98% gain.
Sold ACE for a 1.50% gain.
Sold OPEN for a 1.14% gain.
Sold ACE for a 0.95% gain.
Sold HCP for a 0.61% gain.
Sold ATHR for a 0.11% gain.
Sold ATHR for a 0.04% gain.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
HS
HS
AIXG
FSS
SKH
ONNN
UNT
VRNT
ULTA
WYNN
RBN
CALD
KEM
VRNT
OSK
GTE
NE
WYNN
UNT
F
RBN
BRNC
CYBX
PL
CYBX
CIE

No new picks were generated tonight.

-The Power Dip Team

¹Since stops are not used, risk is more than 2%. 2% is used for position-sizing purposes.

Some Recent Winning Power Dip Trades

These trades were closed today at the close. PDS subscribers were alerted yesterday evening to close them.

The blue up arrow shows the buy on the open. The other blue horizontal arrow shows where the trade was closed.

The system alerted subscribers this evening to 13 other positions that will need to be closed tomorrow at the close. Not all of the 13 trades will be winners. Below are a few that are still open but will likely be closed tomorrow for profits.

As always, PDS trial is free.

Power Dip Setups at One Year Low

Dip buying when the market is continuing to fall requires confidence. I would not continue to dip-buy into a multi-month market collapse. One of the things I like about PDS is that when the market gets weak enough, the system will quit giving signals. The reason for this is simple. Since the system only buys stocks in an uptrend, a market that falls long enough will eventually erase most if not all uptrends.

Currently, the number of stocks in an uptrend (as quantified by the system) is 131. This metric has not seen such low levels since the summer of 2010.

We are looking at the bottom pane of the chart. This metric has also been a fairly good at marking bottoms.

Notice that beginning in 2008, the number of PDS setups was fewer than 100. It does build up slowly to almost 500, but then as the market begins to fall away again in June, the number of setups get fewer and fewer until on October 10th, 2008, there were only 17 stocks in an uptrend. Keep in mind that just because it is in an uptrend doesn’t mean that the system will buy it. It has to dip first, and when it does, it must not violate other criteria in order to count as a true Power Dip.

If the market continues to slide here, PDS will be issuing very very few picks, and subscribers will be mostly in cash. If the market stabilizes or bounces, the number of picks will climb. Either way, knowing this gives me the confidence to keep buying dips, even as the market is falling.

Power Dip YTD- Positive For the Year

My little swing trading system has suffered for part of this year but appears to have weathered the worst of the drawdown. In fact, my post about taking the system to the doctor damn near marked the bottom of the drawdown for the more aggressive models.

The 10% of Equity per Trade model has been in the black for over a week now (see the YTD equity curve below), and the other models are flirting with going positive for the year. Their metrics, specifically the percentage of winning trades, are still sitting beneath their historical averages. I maintain that they will eventually return to their means, or better.

Here are the Year-to-Date results.

20% of Equity per Trade

Net % Profit: -1.76%

Annualized: -4.23%

Average Trade: -0.04%

Winning %: 60.81%

———————————————

10% of Equity per Trade

Net % Profit: +0.97%

Annualized: +2.38%

Average Trade: +0.12%

Winning %: 63.50%

———————————————

ATR Position Sizing

Net % Profit: -1.03%

Annualized: -2.49%

Average Trade: -1.10%

Winning %: 61.70%

.01/share was included for commissions.

To see more information about historical backtested results of the system, you can take the free trial, or feel free to leave a comment in the comments section.

YTD Equity Curve for 10% of Equity per Trade Model:


The Daily Dip Subscriber Email

Every evening PDS subscribers receive an email, “The Daily Dip” which details the stocks sold that day, lists the open positions to be closed the next day, and lists any new positions for the next open.

Last night’s email was particularly nice since the system closed many winning trades and is scheduled to closed more today. The text of the email is below.

————————————————————————————————

Here’s a quick summary of today’s action:

The following positions were sold today at the closing bell:
Sold AHT for a 9.48% gain.
Sold CE for a 9.48% gain.
Sold NUAN for a 7.94% gain.
Sold NUAN for a 7.56% gain.
Sold CYOU for a 7.03% gain.
Sold MICC for a 5.36% gain.
Sold OMEX for a 4.84% gain.
Sold AIT for a 4.65% gain.
Sold UTIW for a 4.60% gain.
Sold IR for a 4.31% gain.
Sold IEX for a 3.13% gain.
Sold IJK for a 3.06% gain.
Sold IWP for a 3.05% gain.
Sold RGLD for a 3.02% gain.
Sold AIT for a 3.01% gain.
Sold EBAY for a 2.82% gain.
Sold STX for a 2.72% gain.
Sold BAS for a 2.69% gain.
Sold APD for a 2.30% gain.
Sold IWS for a 2.27% gain.
Sold FLIR for a 2.13% gain.
Sold DVY for a 1.61% gain.
Sold AWP for a 1.53% gain.
Sold TQQQ for a 1.49% gain.
Sold PNR for a 1.39% gain.
Sold IRWD for a 1.36% gain.
Sold IWP for a 1.33% gain.
Sold ECL for a 1.25% gain.
Sold WAT for a 1.21% gain.
Sold TYH for a 1.16% gain.
Sold QLD for a 1.06% gain.
Sold EROC for a 1.04% gain.
Sold RSP for a 1.01% gain.
Sold FAST for a 0.99% gain.
Sold VUG for a 0.90% gain.
Sold SDY for a 0.78% gain.
Sold IWF for a 0.76% gain.
Sold IVW for a 0.70% gain.
Sold STX for a 0.68% gain.
Sold XLK for a 0.64% gain.
Sold STX for a 0.51% gain.
Sold XLI for a 0.42% gain.
Sold BAS for a 0.11% gain.
Sold EROC for a -3.78% loss.
Sold MILL for a -6.32% loss.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
SLH
DRN
ROIAK
EQY
WWD
BMR
NWS
YSI
URE
TKR
WTI
MAC
AIV
NGG
WWD
GGP
CUZ
FMBI
VNO
CAR
DEI
ALV
EQR
PENN
UPRO
RWR
ICF
VNQ
WTI
SIAL
IYR
EWG
HIW
BBBY
TDC
COF
GWW
PENN
CMCSK
PSO
CMCSA
SSO
XHB
HIW
CLI
CA
DDM
EMC
EWD
SI
SCHB
GRM
IWB
DHR
MYL
SPY
IVV
DIA
VTV
SLGN
AME
WM
DEI
DRH
PENN
HRL
COF
RWX
SNA
EWG
GME

No new picks were generated tonight.

-The Power Dip Team

Top Ranked Picks Closed for Outsized Gains

Excuse me while I share some recent successes.

Yesterday, PDS closed GENE for a huge gain. GENE was the top-ranked pick for 2.1.11

Today, PDS closed HILL for an out-sized gain. Hill was the top pick on 2.2.11

CIEN was also closed today, for another big gain. CIEN was ranked 4 out of 14 picks on 1.21.11

Have a great weekend!

Power Dip Closes 26 Winning Trades

I’m not much of a braggart, but from time to time I think it is appropriate to highlight PDS 2.0, especially when it is performing exceptionally well. Also, a commenter was wondering how the positions fared that were scheduled yesterday to be closed today. They all closed in the green.

Below is the text of the email that subscribers received tonight. I removed the new buy for tomorrow.

———————————————————————————————————————————————–

Here’s a quick summary of today’s action:
The following positions were sold today at the closing bell:
Sold HS for a 12.50% gain.
Sold HS for a 11.85% gain.
Sold SKH for a 5.28% gain.
Sold AIXG for a 4.97% gain.
Sold ULTA for a 4.78% gain.
Sold ONNN for a 4.70% gain.
Sold KEM for a 4.61% gain.
Sold F for a 4.45% gain.
Sold UNT for a 4.07% gain.
Sold FSS for a 3.66% gain.
Sold VRNT for a 3.63% gain.
Sold WYNN for a 3.60% gain.
Sold VRNT for a 2.81% gain.
Sold RBN for a 2.80% gain.
Sold WYNN for a 2.74% gain.
Sold CALD for a 2.68% gain.
Sold OSK for a 2.52% gain.
Sold UNT for a 2.25% gain.
Sold RBN for a 1.47% gain.
Sold CIE for a 1.23% gain.
Sold NE for a 1.19% gain.
Sold GTE for a 1.09% gain.
Sold CYBX for a 0.80% gain.
Sold PL for a 0.78% gain.
Sold CYBX for a 0.65% gain.
Sold BRNC for a 0.58% gain.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
MGA
MGA
NUAN
HYC
HYC
MRVL
MRVL
UNP
PAY
SNCR
BCSI

The following stocks were identified tonight as new buys, to be bought at tomorrow’s open:
XXXX

-The Power Dip Team

Power Dip Winship Continues

The 2% Risk, 3 ATR Model¹ is up 6.36% YTD, including commissions of .01/share.

20% Equity per trade model is up 5.12% YTD, including commissions of .01/share.

Despite continued calls from the financial nose machine to short this market, PDS 2.0 has stayed long. Here are some trades that were closed today.

Even Le Fly got long OPEN on the day PDS 2.0 selected it for buying…

Subscribers received the email below this evening. Note all the trades to be closed tomorrow. Most will be closed profitably. The new delayed exit makes the system easily traded by folks who work and can only place orders after the market has closed or before it has opened.

————————————————————————————–

Here’s a quick summary of today’s action:
The following positions were sold today at the closing bell:
Sold NAV for a 7.91% gain.
Sold AUDC for a 6.32% gain.
Sold CSX for a 4.98% gain.
Sold ACE for a 1.50% gain.
Sold OPEN for a 1.14% gain.
Sold ACE for a 0.95% gain.
Sold HCP for a 0.61% gain.
Sold ATHR for a 0.11% gain.
Sold ATHR for a 0.04% gain.

The following positions closed above their exit thresholds today, and are scheduled to be sold at the next closing bell:
HS
HS
AIXG
FSS
SKH
ONNN
UNT
VRNT
ULTA
WYNN
RBN
CALD
KEM
VRNT
OSK
GTE
NE
WYNN
UNT
F
RBN
BRNC
CYBX
PL
CYBX
CIE

No new picks were generated tonight.

-The Power Dip Team

¹Since stops are not used, risk is more than 2%. 2% is used for position-sizing purposes.

Some Recent Winning Power Dip Trades

These trades were closed today at the close. PDS subscribers were alerted yesterday evening to close them.

The blue up arrow shows the buy on the open. The other blue horizontal arrow shows where the trade was closed.

The system alerted subscribers this evening to 13 other positions that will need to be closed tomorrow at the close. Not all of the 13 trades will be winners. Below are a few that are still open but will likely be closed tomorrow for profits.

As always, PDS trial is free.