System 12 - Q 2, 2014

.this update covers activity starting on 7/15/14 through 8/15/2014.
I am way late on this update, although I recorded the data on time, and there are some changes.

System12BCM:
http://stockcharts.com/freecharts/candleglance.html?RDS/B,MSFT,CVX,BRK/B,AAPL,PTR,XOM,GOOGL|B|P5,3,3|0

Open positions of System 12 are light. I was hoping that some of stop-outs would recover, but while some are questionable (specifically WFC), others are gone for now (like GE). I can buy back any sold position after 5 day Positioning Period (PP) elapsed, disregarding wash sales. System12 goal is to lean towards Mega Dozen (MD), but I can not stay light - I have to go for Second Dozen (SD). 4 open slots is alot, I am a bit worried.
UPDATE 8/5: after all recent stop outs, now I only have 4 positions left. I wasn't worried for nothing...he-he. System 12 is protecting itself, as it should, but really-really need to be buying something...really...

BOT: WMT on 7/16 (but then out on 7/25); PG on 8/6; IBM and GOOGL on 8/13
SLD: WFC on 7/17;  GE and JNJ on 7/21; NVS on 7/25; WMT on 7/25;  RDS on 7/30;  XOM on 7/31;  CVX and GOOGL on 8/1 (bought Google back 2 weeks later)
DIVI received: GE, PTR, AAPL

 IBM, FB, BHP, PFE, T

This is MD:
http://stockcharts.com/freecharts/candleglance.html?AAPL,XOM,GOOGL,MSFT,BRK/B,JNJ,RDS/B,WFC,GE,WMT,CVX,NVS|B|P5,3,3|0

No changes to MD.
GE and WMT are toying with 'disqualified'.
I don't have WFC, JNJ, GE, WMT, NVS, and by 8/1 RDS, XOM, CVX, GOOGL
 2nd Quarter MD 2014 earnings score
(only initial reaction considered, regardless if stock recovers or not):
All reported:  6 up; 6 down (just like last quarter).
Earnings: XOM July 31,  CVX Aug1, WMT Aug 14

This is SD:
http://stockcharts.com/freecharts/candleglance.html?PTR,PG,JPM,CHL,VZ,TM,HSBC,IBM,PFE,T,FB,BHP|B|P5,3,3|0
ORCL and BUD out; BHP and FB in... Facebook!!!???
I have PTR

This is Arnott Overlay (AO):
XOM, CVX, GE, WFC, BRK, AAPL for 15% each
RAFI 1000 index was rebalanced. Most recent weightings are here (link).
Of note: MSFT and JNJ just missed top 12 rafi, while JPM just under MD
http://stockcharts.com/freecharts/candleglance.html?SPY,RSP,PRF,XOM,CVX,GE,WFC,BRK/A,AAPL,JNJ,MSFT,JPM|B|P5,3,3|0

 Arnott Overlay and System12 Select Theme (AOS12s) of System9.
As of 8/5 it only holds BRK and MSFT, but i will gladly buy standard size positions of anything that gives an entry (up to maximum allocation of 25% of portfolio)
GURU holdings include: AAPL,  JPM, MSFT, PG, WFC

Summer

Summer market leaders.

Simple Finviz scan:  consider any reasonable stock (over 300mln market cap, $10+, at-least 500K volume), of profitable company with very low or no debt. I want something that doubled in past 12 months, and still above 50/200 day ma. With S&P continuously pushing all time highs, should not be a problem to find many of these. Right? Wrong! Only 12 plus FaceBook.
http://www.finviz.com/screener.ashx?v=111&f=cap_smallover,fa_debteq_low,fa_pe_profitable,sh_avgvol_o500,sh_price_o10,ta_highlow52w_a100h,ta_sma200_pa,ta_sma50_pa&ft=3&o=-marketcap

These are the leading stocks: internet and shit, couple of biotechs, airline. Three Chinese. XRS pays 7% divi. AMBA and RGEN unter 1bil. Very high short interest in QCOR, WUBA, LOGI, AMBA, RGEN
http://stockcharts.com/freecharts/candleglance.html?GMCR,AVGO,SWKS,AMBA,WUBA,BITA,SYNA,LOGI,QCOR,RGEN,SAVE,XRS|B|P5,3,3|0

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Here, courtesy of ZeroHedge, is a  page of 1st issue of Wall Street Journal on July 8, 1889.

Colorful annotations draw shocking parallels between trials and tribulations of distant past and today's news. Like I mentioned before, nothing ever changes. Not in human affairs, nor in markets. Ever...

http://www.zerohedge.com/news/2014-07-08/125-years-ago-or-today
Thanks, Tyler

Here is more:
http://graphics.wsj.com/wsj-125-history/
http://blogs.wsj.com/wsj125/2014/07/07/july-8-1889-the-first-wsj/

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Marc Faber, Schiff, and Gartman talk markets
Oy Vey Iz Mir, you know...


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 John Williams of ShadowStats talks at length about gov statistics mambo-jumbo, and how distorted it is, comparing to old ways of dicing and slicing of economic data. For only 175/year, responsible Mr. Williams delivers reshuffled economic reports, based on 'right' methodology.... no, I will not be cursing here...
Still, interesting talk, worth a listen... minus f@%#ing statistics
http://www.shadowstats.com/

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Robert Kessler of Kessler Investment Advisors shorted bonds while long term bullish. ... Because 'its reasonable to be careful'... Classic... But really, these are the guys who ALWAYS win, even when they losing... He-he

Thanks, Consuelo
http://wealthtrack.com/recent-programs/robert-kessler-bullish-treasuries/

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Old School Charlie Munger in 2009, talks about idiot boom, false competitiveness, and Berkshire investment tricks.
Plain spoken, rare these days.

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