Sunday, October 15, 2017

30  Year  Anniversary  Of  1987  October  Market  CRASH !!!  

I still remember that Monday in October of  1987  when the  $DJI  dropped  -22%  in a single day.  My portfolio was down by  -40%  by the end of the week.  I was too naive at that time to put my trust on people that were handling my money.  It was a very painful event.  I have since than learnt to recognize the warning signs of imminent worsening market conditions.  Knowing what to look for helped me save my portfolio during the market correction in the year  2000  and  2008.  In the process I also learnt to recognize the signals of the market rally.  IBD (Investors Business Daily)  identifies this signal as a   Follow Thru Day.  Once you acquire the skills of reading and understanding the stock charts, you as a retail investor/trader will avoid a market crash.  You will also learn to  TIME  the market and enter the market just at the right time.  

My  Market  Outlook

I still have a bullish bias towards the market.  I did not see any data last 2 weeks to suggest that we would have a market crash in October this year.  I hear remarks from other investors who can't believe that the market is not going through a major correction.  So many investors are fearful and scared to be in the market.  They are being defensive and listening to what some of the market  "GURUS"  spout out on media.  Going by your feelings about the market or your biased opinions can be very misleading.  Data is what really matters.

Currently we have  2   distribution days   with the major indexes of  $SPY  and  $NASDAQ.  The famous crash in 1929 had piled up  9  distribution days  and the October  1987  crash had  11  distribution days.   That is the data.  Market is also in a confirmed uptrend.  This is a signal that suggests to retail investors to initiate stock purchases.  Currently I have  75%  of my portfolio invested in the market.  There have been quite a few stocks popping up from their bases all summer long.  Most bullish quarter of the year started 2 weeks ago.  This week we have some major financial and transport names reporting earnings.  Institutional investors account for  75%  to  80%  of the daily trading in the stock market.  They ultimately decide the movement of the stock.  Controlling losses and harvesting profits with the use of trailing stops is a good strategy to follow.  

Where  Are  We  Headed

We had a  Follow Thru Day  on election day  Nov 8th of 2016.  That was the signal to enter the market.  We have not had a  -5%  correction since the election.  The following 3 major indexes have been closely following the  8 day ema(exponential moving average) on a weekly chart for the last  11  months.  That data suggests the bullish stance of the market.  Here are the performances of the major index.  I have highlighted the range in parenthesis what I view as the direction of the market in the next 2 weeks.  It is not a forecast by any means.  Monitor the market daily and make appropriate adjustments on your stocks with trailing stops. 
  • $SPY ...  +17.80%   (250 - 260)
  • $DJI ...    + 21.35%  (22,500 - 23,300)
  • QQQ ...   + 28.00%  (144.50 - 152)

Update  On  9  Stock  Positions 

There were 9 stock positions initiated in September to roll out profits that were harvested from the 10 stocks that were closed out.  3  of the stocks had losses of  -4%   and the trailing stops helped to mitigate greater losses.  Following are the results and they are still managed actively with trailing stops to capture more profits. 

  1. $YY     (9/5)  ...   +25%
  2. $PAYC (9/18) ... +6.52%
  3. $CGNX (9/22) ... +5.81%
  4. $LRCX (9/25) ...  +11.0%
  5. $CTRL (9/25) ...  +9.53%
  6. $AMAT (9/28) ... +10.42% 
Lesson to learn here is to maintain losses no more than 1/3 of what your profit target is.  This way you can lose on 3 trades and make profit on only one position and your portfolio will not suffer any draw downs.  You will sleep better at night knowing that you have stacked odds in your favour. 

Mentoring  Program

You have seen the results of all the trades and stocks on my watch list all year long.  Whats holding you back from taking control of your portfolio?  You as a retail trader and investor have a much better control over managing your own portfolio than what the institutions can do for you.  

Would you like to learn:
  • How to read the signals that the market gives you so you can mitigate losses and profit when the market gives you a very clear signal to enter the market.
  • How to consistently Outperform the Market like I have shown you.  Buy the growth stock, at just the right time and sell them with precise Trade Plan in place for Loss Exit, Profit Exit and Time in the Trade Exit.
Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.


Contact us at:

investorspotlight@gmail.com


We have just a few spots left.  Don't procrastinate and take action now.  Invest in yourself like I did and take control of your financial future.  

Happy Trading!

AMIN



 

       

Sunday, October 8, 2017

Are  We  Heading  For  A  Market  Crash ?

I celebrated my birthday yesterday and as usual, I looked over a 100 stock charts and  50 etf's  and major indexes.  Why did I do that?  There are several reasons for it that has motivated me to be disciplined to do this every weekend.  Here are some of my reasons:
  • I had celebrated my birthday 30 years ago in 1987 and a week later the stock market crashed.  My portfolio was down by  -40%  within a week.  Ouch !  Ouch!  Ouch!  Never again will I be caught off guard and face this again.  I have since than learnt to know what signs to look for that would signal a market crash.  I saved my portfolio in  2000  and  2008/2009  market crash.  
  • I study and analyse the market every Saturday and Sunday.  Market is closed and there is no noise of the market to contend with.  I don't want to nor do I care to hear the opinions and sentiments of the so called  "GURUS"  that appear on national media.  I look at the data to drive my decisions about the market.  It really doesn't matter what I think or what the stock market traditionally does in October. 
Market conditions are very healthy right now.  We have only 2 distribution days between the   $NASDAQ   and   $SPY.   If the distribution count starts piling up in a row,  I would be concerned than.  1987  market crash began giving us warning shots across the bow in mid September.  What the hell were my mutual fund managers doing than?  They were not looking out for my interests.  How is it that they did not see these warning signs?  The famous  1929  stock market crash gave warning signals several days before and the greatest stock trader Mr. Jesse Livermore knew what signs to look for.  He was thoroughly prepared to profit from the signals he knew and recognized.  He made over  $100  million profit by shorting the market that day. 

Heading  Out  To  Disney

I am taking a few days off to enjoy the  "Food and Wine Festival"  at Epcot Disney Theme Park in Orlando Florida.  I will be totally engaged with the market while I am taking a mini vacation.  I just finished adjusting my   "Trailing Stops".   This is something that every trader and investor ought to do with their stock positions.  Lot of the stocks that I have featured in my blog post last 5 weeks have attained their profit targets.  Some of them have not advanced as much and are retracing.  This is a week one must be disciplined to adjust the trailing stops to lock in the profits in the trade and also to avoid the stock that is retracing and hitting loss targets.  Don't ever let a small loss of  -4%  to  -5%   end up being a  -10%  to  -20% 

Mentoring  Program

Retail traders should never have to suffer a  -40%  loss that I suffered during the 1987 mid October   "Market Crash".   I have since learnt that the hedge funds and mutual funds are not equipped to nor can they completely get out of the market during a crash.  Its not like they can park their money in a checking account like we can. 

Would you like to learn:
  • How to read the signals that the market gives you so as to avoid the market crash we had in 1987, 2000 and 2008/2009.  Learn how to avoid  -40%   to    -50%  during such a market crash.
  • How to consistently Outperform the Market like I do?
Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com


We have only a handful of spots left.  You know your hedge funds and mutual funds are not going to protect your portfolio during a severe market correction of  -10%  to  -20%   Invest in yourself like I did in 1987 and take control of your financial future.  Don't procrastinate and contact us.

Happy Trading!

Amin



  

Sunday, October 1, 2017

Market  Performance  For  September

Historically, September is the worst month to be in the market.  The returns are normally   -0.47%   on an average for  $SPY  when u look at the average performance over the last 50 years.    For the month of September of 2017, the 3 major indexes had an above average positive performance as indicated below.  I have indicated in parenthesis the year to date performance as well:
  • $SPY ...  +1.51% (+12.39%)
  • $QQQ ... -0.52% (+22.76%) 
  • $DJI  ...  +2.08% (+13.37%) 
This is the first month this year where the  $QQQ  had a negative performance.  This suggests that there was a lot of profit taking from the technology sector this month. This is the reason why I was suggesting to my readers last month to make sure to have trailing stops on your positions.  Institutions have been harvesting their profits from the Technology Sector  ($XLK)  this month and deploying their cash into the depressed Energy Sector (XLE), Industrial Sector  ($XLI)   and the Financial Sector  ($XLF)


Where  Are  We  Headed

I still have a very bullish bias towards the market.  I pore over a 100 stock charts every weekend and study the performance of the Leading Growth Stocks that have a Relative Strength ratings (RS) above 90.  I continue to locate opportunities to profit from Leading Growth Stocks consistently.  We are heading into the best 3 months of the year in the market.  My projections for the year end performance for the 3 major indexes are:
  • $SPY ... 260    (+16.52% for the year)
  • $QQQ ...154    (+30.00% for the year)
  • $DJI  ...23,300 (+17.83% for the year)
We only have 4  "distribution days"  according to to IBD(Investors Business Daily).  This should indicate to us that the overall conditions of the market is very healthy.  

Performance  Of  My  17  Stocks  Was  +5.63%  For  September

Currently I still have the 17 stocks with trailing stops in place.  None of the trailing stops have been triggered either for loss or for profit yet.  They have all been adjusted before the market opens on Monday for the first session of October.  Here is the summary of the results of those 17 stocks. 
  • Total entry price for  17 stocks  ...   $2144.89
  • Total current price for  17 stocks ... $2265.55
  • Total Profit for  17 stocks             ... $120.66  
  • Total % profit for  17 stocks         ... $+5.63%   
My stocks once again outperformed the leading index  $DJI  by +271%  more than 2.5 times the leading index.  This is over and beyond the  2.56  times the average profits over average losses incurred in the 10 positions that were closed last week.  

I have added 4 more positions from the profits that was harvested.

  1. $CGNX   $111.80  (9/22)
  2. $CTRL    $ 27.50  (9/25)
  3. $LRCX    $171.00 (9/25)
  4. $AMAT    $ 48.85  (9/28)

Mentoring  Program

Retail investors and traders should be able to outperform the market because we are more nimble.  Institutions such as hedge funds, pension funds and mutual funds take several weeks to get into a full position and it takes them just as long to exit their positions as well.  

Every investor ought to examine their portfolio and be asking the question:
  • Has your portfolio outperformed the  $SPY  performance of +16.52%  year to date
  • Would you like to learn How to consistently Outperform the market like I do?
Schedule a FREE 30 minutes of  "Discovery Call"  with us to see  if you qualify for our program.

Contact us at:

investorspotlight@gmail.com

We are heading into the best performing quarter of the year.  Take control of your financial future.  Your hedge funds and investments in the mutual funds is not going to get you ahead in the market.  Instead of paying them the  1%  to  2%  fees, why not invest that money in educating yourself.  

Happy Trading!

Amin




DISCLAIMER



Do not take a position unless you are prepared to sustain a TOTAL LOSS. Your loss could include the money you invested as well as commissions and transaction charges.


The Information I provide is for education and informational purposes only. The Information provided is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information provided is general in nature and is not specific to you or anyone else.


YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A LICENSED PROFESSIONAL. You understand that you are using this Information AT YOUR OWN RISK.