Market Basket Trading

Market Basket Trading

We will be introducing more market basket trading over the next few months. Within a market basket the trader invests equal $’s in each position, or does so by % allocation, and holds in a basket.

The stocks can be bought and sold individually, but at Blue Chip we typically hold the basket for sale as a basket.

As an example of how we trade we invested $2500.00 4/8 in the total of the basket below, invested another $2500.00 on market lows 4/13, and now hold a small position of $5000.00 in a basket of the following stocks, with no stop loss:

2012 Brand Basket

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

This week we will be introducing three new market baskets for traders. One is from our friend Trader Alan, who invests in breakouts and higher risk speculative plays. We’ve done well with his recommendations and his work brings new dimensions to our style of speculative trading:

Trader Alan’s Dice Roll Basket

THIS BASKET WILL BE LISTED IN OUR BLUE CHIP ALERT Subscribers Alert early this week

With this fund we recommend an equal dollar valuation, meaning pick a dollar amount for the basket investment, and invest equally in each position. Later you can add, sell, and change exposures, but we would start here by dollar valuation

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

Michael O’Higgins, head of the O’Higgins Asset Management Group in Miami and the famed creator of the Dogs of the Dow basket created the next basket.

The Dogs of the Dow is based on the premise that one year’s worst performers of the “dogs of the Dow” could become more often than not the next year’s big winners. It’s proved steadily correct.

His new approach, tested since 1995, is called the MOAR Basket, standing for the Dogs of the World, or the Michael O’Higgins Absolute Return Fund.

After every losing year by the Dogs of the World he takes 5% points from each of the other categories and over weights the dogs, again playing the odds that they will outperform. If and when the stocks rebound he brings the equity portion of the portfolio to normal in 15%% point increases.

Using this technique since 1996 MOAR would have appreciably outperformed every major stock index, long and intermediate term bonds, gold and cash and inflation and done so with ONLY ONE DOWN YEAR.

This is a percentage allocated basket:

THE BASKETS will be shown each day in our Blue Chip alerts this week, for our subscribing base. Mr. O’Higgins is hard to argue with, as his famous Dogs of the Dow has worked famously, and we think his thinking of Dogs of the World will be an excellent hedge against turbulent markets

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

Make note this is a 4-day trading week. If investing in baskets, start in small increments (Fidelity Brokerage requires only $2000.00) to create a basket, and build equity regularly in buys into the baskets.

Good trading, and please shoot me if Donald Trump becomes President, as we have become then not an ignorant nation, as I see us, but truly a stupid nation, and I’ll be moving out.