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That’s the motto of 2013’s bull market so far. Traders who were bearish and heavily in cash last fall ahead of the Fiscal Cliff deadline, have had few chances to get into stocks on pullbacks.
Liquidity moves markets!Follow the money. Find the profits!
The week ended July 12th was no exception. Decent gains on Monday and Tuesday were followed by a flattish Wednesday. Anyone praying for a major sell-off had their hopes dashed when the DJIA & NASDAQ surged on Thursday to new all-time records.
The YTD 2013 pattern looks pretty similar. Gains have been almost non-stop. The late-April pullback was shallow. The May through June sell-off was significant but anguished bears were too busy hoping for ‘the big one’ to buy into a mere 6% decline.
When market timers had their best buying opportunity of the year they almost universally passed on taking action. Yogi and Boo Boo must be getting very hungry and frustrated.
Market Shadows was not fooled by our politicians last fall. We refused to be hoodwinked by Chairman Bernanke’s Taper talk Don’t Fear the Taper in June.
By remaining fully invested we’ve managed to compile an envious track record. We’ve accomplished it without employing any leverage or options.
As of July 13, 2013, our Virtual Value Portfolio is ahead by 25.3% since its October 26, 2012 inception date. The $100,000 initial stake has grown to $125,319.
We do believe in collection of premiums through selective option writing. You can see how we deal with put writing here Virtual Put Selling Portfolio . Results in that portfolio have also been impressive since we got it going in January of this year.