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[highnote]

Back on July 11 the Zweig model I keep gave a major buy signal when the ratio of up stocks to down stocks over a 10 day period was greater than 2 to 1. This happens rarely, but when it does it signals momentum caused by heavy buying. The signal is usually good for 6 months and the average increase in the market is 15%.

The S&P was at 2137 that day. Today, it is at 2198 -- up about 3%. I don't see it going up 12% more by January 15, but the rally may extend longer than 6 months and eventually the S&P could hit 2457.

On October 27 there was a small sell signal when the Value Line Index fell 4% from a recent high. I think this was due to the uncertainty of the election.

On November 9, the day after the election, the Value Line Index had risen by 5% -- which was a buy signal. The market had time to pause and reflect and realized that Trump winning would not be the end of the world. The S&P is up 1.5% since the election.

I went to about 50% cash on the Oct 27 sell signal.

On Nov 7, two days before the election, I anticipated a rise in the market. I bought a bunch of shares in 4 different companies with very low prices that ranged from $1.27 per share to 4.30 per share. Those shares are up 5.1% since Nov 7.

1.) I think the market is going higher based on buying momentum and 2.) small stocks tend to outperform large stocks at the end of the year and into the new year due to tax loss selling.

I bought PDLI, CPSS, PACD, and STLY Nov 7 and bought more PDLI on Nov 16.

STLY has been a disappointment, but it only cost $1.27 per share. It's down to $1 now -- about a 21% loss.

PDLI is down 2%.

CPSS is up 9% and PACD is up 32%.

I'm happy with a low risk, 5% gain after only two weeks. My goal is to make 50% per year. Buffett says he could make 50% per year if he only had a small amount to invest.

A 5% gain in two weeks is about a 125% annualized gain.