S&P 500 index
was wobbling around 1515 points through the entire last week ending at
the level of 1519.79 and giving no any signs of its intentions to go
further down or up.
This
kind of shaky equilibrium is continuing since the beginning of February
2013 when the stock prices in US market have started to slacken the
rate of powerful uptrend that developed in December 2012/January 2013.
Looks like US stock market
is waiting for something to happen. The main question is – waiting for
what! I wish I could know what is going to happen deep in the market’s
guts. Honestly, I am still expecting a substantial correction of prices
and then resuming of market growth in March and April which historically
is typical for these months of the year.
Chart 1
We’ve already got used to complete disregard of S&P 400 stock index or our RMP portfolio containing MDY stocks
to small stochastic downward market moves. Red line on Chart 1
representing RMP has been stubbornly climbing up for last 5 weeks and
continuing to do so. Total value of RMP grew by +0.58% or $194.18 for
last week reaching summarily $33,719.58. Let me remind you that the
initial portfolio’s value was equal to $29.996.20. We have now a nice
profit of +3,723.38 or +12.41%. At the same time US stock market in
general (S&P 500 index) has grown by only +4.39%. Comparing the
above number with the RMP’s growth one can see the difference – RMP
grows nearly 3 times faster than S&P 500 index. Our portfolio so far
is a clear winner in its competition with the general US stock market.
It
gives me a really good feeling to see that VMP1 (green line in the
chart) is growing even faster than RMP: our 15 MC400 stocks selected in
October 2012 have added on average +13.54% or $4,024.91 reaching in
value summarily $33,740.62. VMP1 now is a record holder in our account
and the undisputable leader of the pack and best of all the profit
numbers are not final. The portfolio looks very strong and we still have
a possible spring run ahead of us.
Please,
do not forget that VMP2 is able to perform some fantastic jumps forward
when the situation on the market is improves sufficiently. For now
FebVMP2 is still losing our money – the portfolio has shrunk in value by
-$803.96 or -2.91%. Total value of FebVMP2 is equal to $29,189.05 – the
portfolio is still in the green zone due to previous gains, but it is
to be seen for how long it will be able to hold water. Back testing data
show clear tendency of MRO strategy to generate the best profits in the
spring season of the year. I still hope that VMP will repair its
reputation and return to profitability by the end of the investment period of 2013.
Conclusions:
1.
S&P 500 was wobbling around 1515 points level through the entire
last week. US stock market is in a kind of equilibrium now and nobody
knows where the market is going to go – up or down.
2. RMP and VMP1 both added some money to their total values – +12.41% totally for RMP and +13.54% for VMP1.
3.
FebVMP2 continues losing money: its value has shrunk by -$803.96 or
-2.91% by now. I hope that the future spring run will restore the
portfolio’s ability to earn money instead of losing it.