Monday, January 15, 2018

Learn  To  Invest  In  The  Stock  Market

Last night I was talking to my cousin in Canada and she told me that she made only  +4.5%  in  2017  with the money she has with her financial institution that handles her retirement account.  My answer to her was that most of my students made over  +40%  utilizing my methodology on investing in Growth Stocks.  She couldn't quite understand how that was possible.  I suggested to her that she had better subscribe to my blog and learn from me.  I also suggested to her that she better acquire a copy of the book:

"How to Make Money in Stocks"
By Mr. William J. O'Neil (Founder of Investors Business Daily)

This is a must read for anyone that wants to learn  "How to Out Perform the Markets"

I have read this book several times and it is a book that I take with me when I go on vacations.  It is also a good reference book to study the stock charts and review the Buy and Sell rules of investing in Growth Stocks. 


Market  Performance

2018 started out with a bang and the market took off as soon as it opened for trading on January 2nd.  We have gone thru just 9 trading days this year and here are the results of the 3 indexes as well as the 9 major sectors of the US market.  I have included the results of the transportation sector and the oil sector as well. 
  • $SPY   ... +4.14%  (General Market Index of 500 Large US Companies)
  • $DJI   ...  +4.39%  (Dow 30 Index of 30 Mature Companies)
  • $QQQ ... +5.60%  (Technology Sector)
  • $DJT   ... +7.17%  (Transportation Sector)
  • $USO   ...+7.16%  (Proxy for Oil Index)
  • $XLE   ... +7.14%  (Energy Sector)
  • $XLY   ... +6.42%  (Consumer Discretionary Sector)
  • $XLI   ...  +5.95%  (Industrial Sector)
  • $XLV   ... +5.00%  (Health Care Sector)
  • $XLF   ...  +4.73% (Financial Sector)
  • $XLB   ... +4.72%  (Materials Sector)
  • $XLK   ...  +4.47% (Technology Sector)
  • $XLP   ...  -0.42%  (Consumer Staples Sector)
  • $XLU   ...  -4.59%  (Utilities Sector)

Market  History

February  16th  2016,  We had a signal that we were entering the kind of bull market that we had witnessed from  1995  to  2000.  Following is a paragraph from my introduction to the blog I published on  May 7th 2017:


DOW  At  60,000  By  2025

How is that possible?   Most of you think this is too far fetched.   Actually it is not.   In 1995, the Dow was at 4,000 and within 5 years it reached 12,000.   Your portfolio would have tripled in those 5 years.   In March of 2009 the Dow was at 7,608 and it has almost tripled in the last 8 years to 21,006 as of Friday May 5th.   We had a bullish period in the market from 1995 to 2000 where the Dow tripled from 4,000 to 12,000 within 5 years.   History does repeat and this sort of performance in the market is not uncommon.   If you are a Growth Stock investor and you master the    IBD (Investors Business Daily)    rules of trading and investing, you can double or triple your portfolio during one of these bullish cycle in the market.   You just have to learn to   "TIME"   the market.    You have to be a  100%  in the market when the   "Market is in a Confirmed Uptrend"    as it was on Monday April 24th end of session that day.   There are also times when you have to be a   100%   in "CASH"    when the   "Market is in Correction"   as it was on February 8th of 2016.



We have entered an unprecedented bullish market as of February 16th of 2016.  In the last 23 months, the 3 major indexex have performed as follows:

  • $SPY   ...  +46.44%
  • $DJI   ...    +59.31%
  • $QQQ   ... +64.11%
Important lessons and observations that one should make from this data is:
  1. A disciplined investor/trader of growth Stocks should have been able to outperform the leading index  $QQQ.  A 72% return  would have doubled your portfolio in the last 23 months. 
  2.  $DJI  has been performing like the  $QQQ  (Leading Technology Sector Index).  That is a seismic shift in the US market and we all better be attuned to that. 
  3.  Could the Dow reach  60,000  by  2025?  I am not forcasting by any means but you all need to learn to mine the data by analysing the indexes.  
My blog post on  January 1st,  I had highlighted the segments of our US market that were likely to outperform the market.  I have listed some stocks in parenthesis in each of those segments that did just that.

  • Oil/gas production and transportation ($USO, $CVX, $SLB, $ODFL, $NSC, $FDX, $UPS,).
  • Steel, gold, silver, coal, copper, chemicals and mining companies ($X, $MT, $NUE, $STLD, $WLK, $RIO, $BHP)
  • Machinery to process the materials and rail/airlines/shippers that transport the materials ($NSC, $DAL, $AAL, $UAL, $ODFL, $CAT, $DE, $BA)

Mentoring  Program

Did your portfolio increase by  +40%  to  +50%  in 2017?
If it did not than you need to start asking questions about what it is that you are doing wrong!  2017  was an unprecedented bullish year and we have already started  2018  +4.14%  with  $SPY  in just 9 trading days.  You better make a commitment this year to learn:
  • How to find the winning Growth Stocks?
  • How to Buy the Stocks Right?
  • How to Plan your Trade for Profit, Loss and Time in the trade?
  • How to Sell your Stock Right?
  • How to TIME the market?
I shall be opening up a very limited number of slots for mentoring this month.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com 


Happy Trading!

Amin 






Wednesday, January 3, 2018



Portfolio  Protection

Today, Wednesday January 3rd, the US market is continuing to trade higher.  Market had been trading sideways for the last 2 weeks in December of 2017 and trading volume was much lower because of the holidays.  Institutional buyers have come out with full force when the market opened up on Tuesday after the long 3 day weekend holidays.  Lots of stocks are showing signs of breaking out from their resistance lines this morning.  Some of those stocks are getting extended but may offer a short term opportunity to add to your positions if you have already made some profits in the stock.
Here are those stocks:
$OLED, $HTHT, $YY, $FIVE, $THO, $NVDA,$NVR, $KBH, $LEN, $DHI, $VALE, $URI. $NFLX, $TREE, $WLK, $HFC,$TEAM, 
$VIX   is currently trading around   $9.20.   It has traded as low as  $8.84  in 2017.  This would be an opportune time to consider doing an option trade to protect your portfolio.  2018 will have some volatility and will not be as smooth sailing as we did in 2017.  Market has not corrected more than  -3%  in 2017.  February traditionally has been a poor performing month in the US markets.   $SPY, $QQQ  and $DJI  has been trading at the  upper   bollinger bands   for the entire month of December.  $DJI  has traded as long as 8 weeks at the upper  bollinger bands  in 2017 before snapping back with a correction.   $VIX   has spiked as high as   $14.51  on Aug 11th (we had distribution days on Thursday Aug 10th and again a week later on Thursday Aug 17th on the  $SPY  as well as the  $NASDAQ).  That is a spike of  +57%  to  +88%   WOW!  WOW!  WOW!  
Is this an opportunity or what?
Happy Trading!
Amin

Monday, January 1, 2018

Happy  New  Year

2017 was one of the best years other than the year 2009 when the market came out full force with a confirmed bullish uptrend.  There were so many doubters about the 4 day rally from Feb 11th thru the 17th (4 day rally) of 2016.  No one believed that the market would maintain its bullish stance after 7 years.  There were however plenty of signals in the market in mid February of 2016 when  IBD(Investors Business Daily)  signaled a  'Follow Thru Day'.   That was the time to start initiating stock positions in the Leading Stocks in the Leading Industry.  It will be 2 years on Feb 2018 for this continuation of the bullish trend that started in March of 2009.  We have only had less than  -3%  correction in the market last year.  Volatility ($VIX)  has been at record lows and hovering around 9. 

High  Lights  of  Market  Performance 

I took the time over the weekend to analyze the markets and study some of the profitable trades that I did and the stocks that I shared in my weekly blog in 2017.  It helps me to get the sentiments of the market and where I see the opportunities heading into 2018.  The performance of the 3 major indexex and the 9 main sectors is highlighted below:

  • $SPY   ... +19.4% (General Market Index of 500 Large US Companies)
  • $DJI    ...  +25.1% (Dow 30 Index of 30 Mature Companies)
  • $QQQ  ... +31.5% (Technology Market Index of 100 Companies) 
  • $XLK   ... +32.2% (Technology Sector)
  • $XLB   ... +21.8% (Materials Sector)
  • $XLI    ...  +21.6% (Industrial Sector)
  • $XLY   ...  +21.4% (Consumer Discretionary Sector)
  • $XLV   ...  +19.9% (Health Care Sector)
  • $XLF   ...  +19.5% (Financial Sector)
  • $XLP   ...  +10.0% (Consumer Staples Sector)
  • $XLU   ...  +8.50% (Utilities Sector)
  • $XLE   ...  - 4.20% (Energy Sector)
  • $DJT   ...  +17.3% (Transport Sector)
The rally has been pretty broad based with the exception of the Energy Sector ($XLE).  Leading index has been the Technology Sector ($XLK)  and most of the stocks I had highlighted in my blog posts in 2017 were in that sector as well.

Here are some of the stocks that were the most profitable ones in 2017.  You can review some of my posts in 2017 where I shared my  Stock Watch List  and the trades on these stocks.  All of my 160 blog posts are archived for your FREE access.


  1. $NVR
  2. $NVDA
  3. $ALGN
  4. $ANET
  5. $CTRL
  6. $KEM
  7. $YY
  8. $OLED
  9. $CGNX
  10. $AMAT
  11. $THO
  12. $NFLX
  13. $AVGO
  14. $NTES
  15. $LRCX
  16. $VEEV
  17. $PYPL
  18. $MA
  19. $PRAH
  20. $CBOE
  21. $RHT
  22. $BABA
  23. $VMW
  24. $GRUB
  25. $HDB
  26. $IPGP

Market  Outlook 

My sentiment of the market is quite bullish for 2018.  We are witnessing an unprecedented event throughout the world markets.  Asian markets are up over  +30%  (South Korea, India, China, Hong Kong) as well as South Africa.  Large economies of Europe (Germany and France) as well as Japan are all up over  +23%  for 2017.  These are the economies that will fuel the emerging economies of the world in 2018.  I shall be monitoring the following segments of the markets:
  • Oil and gas production, transportation and exploration.
  • Commodities like steel, gold, silver, coal, copper, chemicals and mining companies.
  • Machinery to process the materials, and rail/airlines/shippers that transport the materials.
Growing economies of the world will need commodities and machinery to mine the minerals and process the chemicals.  The same is true of the major big markets of US, Europe and Japan.  As always,  I shall let the stock charts be my final guide to reflect my sentiments.  I shall continue to share with my readers, subscribers and followers, My Market Outlook in my blog posts every week.  I appreciate all the comments and suggestions you have made over the last 52 weeks.  Please continue to give me your feedback and suggestions in 2018 as well.  

Mentoring  Service

Did your portfolio increase by  +40%  to  +50%  in 2016?
If it did not than you need to start asking questions about what it is that you are doing wrong!  2016  was an unprecedented bullish year and you better learn:
  • How to find winning Growth Stocks?
  • How to Buy the Stocks Right?
  • How to Plan your Trade for Profit, Loss and Time in the trade?
  • How to Sell your Stock Right?
  • How to TIME the market?
I shall be opening up a very limited number of slots for mentoring this month.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com  


Have a Very Happy, Healthy and a Prosperous 2018


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.