System Update. 1-2016

System12

  ...System12 original rule-set is basically discontinued. I continue to use it exclusively as high quality stock selection tool and timing entry/exit using weekly CSI (Composite Score Indicator)...

Since last update at the end of November 2015 (post link), market went basically straight down, putting a bottom on Jan 20 with extremely oversold readings. I wanted to wait a bit to see some early earnings reports and reaction to it.
One of MD stocks I was especially interested in - AMZN, aka "river of no returns", sporting a farcical 975 P/E just a month ago. Don't get me wrong - I'm a big fan, long time happy customer and successful investor in AMZN (last year), but silly fundamentals of this outfit make me very uneasy.
I saw Television Genius Barry Diller (wiki) opine that Amazon will be one of biggest companies in the World (among some other wild prognostications). I have highest respect for Mr Diller (college drop-out, naturally). He is a visionary, great businessman... and married to a real princess, no less..., but he is not a market practitioner. Had he be one, he would know that AMZN already IS one of top ten companies in the World, although it slid from #6 to #9 due to disastrous earnings call and guidance.
Note to self: never take stock advise from non-market practitioner. Really.

System12BCM:
http://stockcharts.com/freecharts/candleglance.html?WFC,PFE,PG,BRK/B,T,CHL,BUD,GOOGL|B|P5,3,3|0

This is MD:
http://stockcharts.com/freecharts/candleglance.html?AAPL,GOOGL,MSFT,BRK/B,XOM,AMZN,GE,FB,WFC,JNJ,PG,T|B|P5,3,3|0

https://trader.motifinvesting.com/motifs/mega-dozen-Ftnb1cNJ#/overview
.motif is re-balanced to equal weight for better near-term tracking.

MD Control: CHL and JPM out; PG and T in
Disqualified: AAPL, BRK, WFC, CHL and XOM (by a smidge)
Earnings: GOOGL 2/1; XOM and PFE 2/2; BRK 2/5; DIS 2/9; WMT 2/18; HD 2/23; BUD 2/25

This is SD:
http://stockcharts.com/freecharts/candleglance.html?CHL,JPM,WMT,NVS,VZ,BUD,PFE,TM,PTR,KO,V,CVX|B|P5,3,3|0
DIS out; CVX in (CVX was hanging close in last update)
Some of stocks coming up: BAC, HSBC and C; PEP and PM; MRK; ORCL and INTC (not ibm)
also HD almost at SD, with DIS close by and CMCSA down below.
Oiler RDS  hanging out; BABA at #26 and keeps coming down (lol).
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FMSUP Utilities Portfolio.

FMSUP overview here (link)
Started 1/4/2016. Starting equity $20K.
Positions entered on open.
SO    3164.51
PPL   3163.44
PNW  3159.14
ES    3148.25
ATO  3158.95
AWK 3183.18
Cash reserve 1022.53

http://stockcharts.com/freecharts/candleglance.html?SPY,XLU,FSUTX,SO,PPL,PNW,ES,ATO,AWK|B|P5,3,3|0
https://www.motifinvesting.com/motifs/fmsup-M9fcmb13#/overview

Portfolio is mostly large cap with two big mid caps, for average ~20Bil.
ATO and AWK are not in S&P500 (note: Ass-n-Pee has no water utilities... cus people don't need no stinkin' water...)
P/E ranges from 13 to 23; P/S normal; lots of debt (expected).
This mix should yield about 3.5%
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DART Portfolio
(DART overview post link)
Due to circumstances beyond my control, this test virtual account was all screwed up on Monday, January 4. There was no reasonable alternative, so I entered all trades on Tuesday mid-day.

This is a test!
No real money traded, but I keep a virtual trading account with (near) real records.
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Wall Street Always Eats

Last summer I raised a broad question 'What is market?' (post link), with some important observations and facts.
As evident - its not such a straight-forward topic.

Much simpler one : WHERE IS 'MARKET'?

      Apparently, running the market is a big business - some companies have thousands employees. They have their own stocks, paying their own dividends, drowning in their own debt.
ICE Intercontinental Exchange owns NYSE and more, Nasdaq NDAQ owns itself, options are on CBOE and somehow Merc is still around CME.
Brokers: Schwab - where I am, Ameritrade - where TOS is, E-Trade - where baby is, and Interactive Brokers - where everybody else is (I was).
Then there are enablers, hot potato packers, dope-a-hope dealers: BlackRock BLK with iShares; State Street STT with SPDR's; Invesco IVZ with PowerShare; and HFT purveyor Virtu freshly public as VIRT.
.-correction-. Forget VIRT. It trades by appointment. Replace with BEN.

In accordance with Dow Paradox (link), Wall Street'ers have a very important permanent role in a market. Whether they make money or not, the opportunity is always there. Remember: these are the people that win all the time, even when they are loosing. Trading their stocks is a totally different story.
http://stockcharts.com/freecharts/candleglance.html?ICE,NDAQ,CBOE,CME,SCHW,AMTD,IBKR,ETFC,BLK,STT,IVZ,BEN|B|P5,3,3|0

Thinking about world of finance I suddenly realized that one way or the other these stocks are all around me - either I trade them, or use them, or hear about them all the time. To round up usual suspects:
Four money center banks dominate everything in financial markets -  WFC, JPM, BAC and C.
Four prominent companies in non-cash money business - Visa V, Master Card MC, PayPal PYPL and Western Union WU.
Goldman GS and MorganStanley MS... I'll keep 'em separated.
http://stockcharts.com/freecharts/candleglance.html?WFC,JPM,BAC,C,GS,MS,V,MA,PYPL,WU|B|P5,3,3|0

I haven't got around to insurance companies, regional banks, etc, but I currently think ... its enough for now...

   About a year ago I wrote about investment managers, their stocks and my fetish in  'Private and Public"(link). They haven't done well, with odd CSI signal here and there, I am still waiting and watching.

These people are a little closer to where I am. Over the past year, their business and stock prices have been thoroughly fucked.

http://stockcharts.com/freecharts/candleglance.html?PSP,BX,CG,KKR,OAK,ACAS,FIG,PSEC,AINV,APO,ARCC,MAIN|B|P5,3,3|0



I don't dare to present this as a comprehensive financials list, but I think it gives a pretty good view of
'Where money eats and sleeps".

Programming note: this theme continues under label 'CG'.

Finviz link for all stocks in this group
http://www.finviz.com/screener.ashx?v=151&t=ICE,NDAQ,CBOE,CME,SCHW,AMTD,IBKR,ETFC,BLK,STT,IVZ,VIRT,WFC,JPM,BAC,C,GS,MS,V,MA,PYPL,WU,BX,CG,KKR,OAK,ACAS,FIG,PSEC,AINV,APO,ARCC,MAIN,BEN&o=-marketcap
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