By Paul Price
The computer sell program that lopped 209 points off last Friday’s DJIA in the final two hours means absolutely nothing. That size move on a 15,200 point index is equivalent to a $10 stock moving up or down 13 cents. You wouldn’t bat an eye on an individual stock that moved 1.3%, so you shouldn’t spend much time analyzing that same percentage fluctuation on the Dow Industrials.
Our Market Shadows Virtual Value Portfolio closed out last week at $120,617. Our starting stake of $100,000 has grown by 20.62% since its Oct. 26, 2012 inception date. That rate annualizes at 34.36%.
In fact, the S&P 500 dropped back more than Virtual Portfolio did last week. The SPY’s total return has been 16.88% (28.14% annualized) since that same starting date last fall.
We made one addition to the portfolio, adding a position in Cognizant Technologies (CTSH) on May 29 @ $63.09 per share. By Friday afternoon, that stock had gained 2.5% from our entry point.
Our Virtual Put Selling Portfolio is looking good as well. We have closed out two positions so far with substantial gains. 100% of the remaining puts are in excess of their break-even points at expiration.
You can see the full details of both portfolios by clicking here Market Shadows Model Portfolios.