Monday, March 14, 2011

A lot has happened with the market and Duck Brother's Investing since my last blog. This blog will catch you up on the progress. The last time I posted Duck Brother's portfolio had three stocks PCLN, LULU, and GPOR. We sold GPOR on February 28, 2011 and earned 28.54%. Our general rule is to sell a stock at an 8% loss or a 24% gain. With GPOR we held on past a 24% gain because it went up 24% in three weeks; and William J. O'Neil says stocks that go up this fast should be held onto and watched closely. The reason we sold on February 28, 2011 is because the stock ran up early in the day and closed were it opened. When stocks make this pattern it could indicate that the security just topped. Below is GPOR's chart the day we sold.

On March 7, 2011 we sold the remaining stocks in our portfolio, because the general market went into correction. The market is in correction when there are 5 to 6 distribution days within a 5 week period. Below is a chart of the Nasdaq showing the distribution days.


At this point it is very risky to invest, because 75% of stocks follow the general market. Below is our portfolio as of today.