Investment Programs

Rising Star Stocks

The Rising Star Stock Program is based on technical analysis that is termed “Directional Investing”. This method attempts to identify when a stock is trending up, down or is trendless. By monitoring a basket of potential purchase candidates we are able to gauge the health and likely direction of the stock market in general. When a large percentage of the basket of potential candidates for purchase are on a “Sell” signal, the market may be nearing an intermediate term market bottom. Waiting for the purchase candidates to turn the corner and reverse their direction allows an investor to be a buyer of stocks when the trend moves higher.

While a large percentage of stocks on the “Sell” side may indicate a market bottom the opposite is also true. When the percentage of stocks on the “Buy” side reaches extremes the market may be ready to change direction and fall into an intermediate term correction. By monitoring the basket of purchase candidates we are able to raise cash as stocks move from buy to sell.

In building a portfolio we will consider adding a stock position if a stock is moving from “Sell” to “Buy”. When the portfolio becomes fully invested and one of the stocks in the portfolio reverses direction and generates a “Sell”, that position will be sold. However, a new stock will only be added if a stock generates a new “Buy” signal. In this manner as the market rolls over from an uptrend to a downtrend we do not stay fully invested. During the bear market of 2008, 100% of the potential stock candidates were on a “Sell” signal during October, thus allowing the model to remain in cash waiting for the direction to change.

This method of investing does create activity in an account and it is anticipated that positions may be bought and sold three to four times during the year. The frequency of trading opportunities will depend on the general market conditions in any given year. Choppy directionless markets will create more trading opportunities than trending markets. The average holding period for a position is not likely to be longer than a year and is more likely to be in the range of 60 days or less. Inverse ETFs may be used to hedge existing long positions when appropriate.

As we move forward there is certain to be bull and bear market periods. The goal of the Rising Star Stock Program is to avoid the significant bear market declines that devastate portfolio values, but still force a portfolio to buy when the opportunities present themselves.

DISCLAIMER

Global Investment Solutions, LLC (the “Advisor”) is a registered investment advisor. The Advisor does not purport to tell or suggest which securities readers should buy or sell for themselves. The analysts and employees or affiliates of the Advisor may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Advisor, the authors, and all affiliates of the Advisor assume no responsibility or liability of any kind for the use of the information contained herein. Factual statements on the Advisor’s website, or in its publications, are made as of the date stated and are subject to change without notice. The opinions, views and/or comments shared on this forum by participants are not endorsed by the Advisor, and the Advisor assumes no responsibility or liability for any trading and/or investment results that you may obtain by using such information.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by the Advisor are not indicative of future returns by that trader or system, and are not indicative of future returns which may be realized by you. In addition, the indicators, strategies, columns, articles and all other features from other companies linked to this blog (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on this blog are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and/or tax advisor to determine the suitability of any investment.

This communication is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product, an official confirmation of any transaction, or as an official statement of Global Investment Solutions, LLC. Inclusion of information about managed accounts, program positions and other information is not intended as any type of recommendation, nor solicitation.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.