Sunday, November 12, 2017

"Follow  Thru"  Day

Can you  TIME  the market? 

ABSOLUTELY

We had a  "Follow Thru"  day on November 8th 2016 which is a signal that tells us that the new bull market has begun.  This is the day when according to Mr. William J. O'Neil (founder of Investors Business Daily) one must start buying the leading high rated growth stocks.  This is the day that the market status changed to a  "Confirmed Uptrend".  Its like a Green light to the retail investors to start deploying their cash into quality stocks.  Highly rated stocks break out of their bases and they rise rapidly within days from their 50 day sma (simple moving averages) to 10 day sma.   

Every bull market starts with a  "Follow Thru"  day.   Not every  "Follow Thru"  day triggers a new bull market though.  However, no bull market has occurred without a  "Follow Thru"  day.  On Friday Sept 9th, we had a major   "distribution day"   when the 3 major indexes   $SPY, $QQQ  and  $DJI  traded below their  50 day sma.  Market status changed to  Market in Correction.  This was the signal to go into  CASH  and to preserve the capital from eroding.  Within 4 weeks, the market changed on Wednesday Nov 9th and those that knew how to  TIME  the market, were rewarded handsomely by outperforming the market.

Market  Results 

Its exactly a year since we entered the new bull market on Nov 8th 2016.  Here are the results of the performance of the 3 major indexex as well as the performance of all the 9 major sectors of the US stock market:

Major Indexes

  1. $SPY ...  +20.81%  
  2. $DJI   ...  +28.50% 
  3. $QQQ  ...+31.40%
Major Sectors

  1. $XLK   ... +34%      (Technology Sector)
  2. $XLF   ... +32%      (Financial Sector)
  3. $XLB   ... +24.08% (Materials Sector)
  4. $XLI   ...  +23.70% (Industrial Sector)
  5. $XLV  ...  +19.25% (Health Care Sector)
  6. $XLY  ...  +16.49% (Consumer Discretionary Sector)
  7. $XLU  ... +13.20%  (Utilities Sector)
  8. $XLE  ... +1.21%    (Energy Sector)
  9. $XLP  ... +0.87%    (Consumer Staples)
Technology was the leading sector for the last 12 months.  17  of the  21  stocks that I had highlighted in my post last week, were in the Technology Sector.  As a retail investor of growth Stocks, one must identify the leading stocks in the leading sector to  Out Perform the Market.

Mentoring  Program

You have seen the results of all the trades and stocks that I have shared with you for the past year.  I consistently Outperform the Market every month.  Retail investor are much more nimble than the institutional investors like hedge funds or mutual funds.  Retail investors that study the markets ought to do better than the institutional investors. 

Would you like to learn:
  • How to  TIME  the market?
  • How to read the signals that the market gives you so you can mitigate losses?
  • How to identify leading Growth Stocks in the leading Sector?
  • How to create a Trade Plan for Loss Exit, Profit Exit and the Time in the Trade Exit?
  • How to enter into a stock position with a Low Risk?  
Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com


There are limited spots for the class.  Don't procrastinate and take action now by contacting us.  Invest in yourself and take control of your financial future.


Happy Trading!

AMIN


Sunday, November 5, 2017

Market  Conditions

Market continues to be in a bullish mode.  If you are not fully invested in the market than you are missing out on profiting from it.  I still hear traders expressing opinions that the market is topping out and climaxing.  I analyse the market every weekend and the data reflects that we continue to get higher highs and higher lows on the major indexes.  June through September are traditionally the worst months of the year.  Looking at the history over the past 50 years,  $SPY (a barometer for the general market) has delivered  -0.03%.   This year however, it was  +4.06%   This trend has continued for the month of October as well.  The performance of the major indexes for October and the leading Technology Sector is as follows:
  • $SPY    ... +2.36%
  • $DJI     ...  +4.35%
  • $QQQ   ... +4.61%
  • $XLK    ...  +7.43%
In order to outperform the general market one must identify the leading stocks in the leading sector.  One must take a position in these stocks by timimg the market.  YES ... You can time the market.  According to  Mr William J. O'Neil (Founder of Investors Business Daily),  he suggests that   "One must buy something on a  Follow Thru Day".   We had a confirmation signal in mid May that gave us a signal to be involved in the market regardless of what the historical data suggested that it wasn't a good time to get in the market.  We had a similar signal on  Feb 16th  and again on  July 1st  and Nov 8th. 

Performance  of  My  21  Stocks

Currently I am  90%  invested in the market.  We are heading into the best 2 months of the year.  Most of the  S&P 500 companies have reported their earnings and we are heading into the tail end of the 3rd quarter earnings season.  This is the time to close out the position on the laggards and harvest profits in stocks that have attained  +15%  or more in profits.  One must have some cash available right now to either add to the position that are profitable and trending along the 8 day ema (exponential moving average)  or to invest in a new position that is approaching its buy area.  Here are the results:

  1. $LMT   ...  + 1.64% (8/29)
  2. $RTN   ...  + 2.05% (8/29)
  3. $FOXF  ... + 4.62% (8/25)
  4. $MNST  ... + 4.85% (8/28)
  5. $PAYC  ...  + 7.05% (9/18)
  6. $MRCY  ... + 9.06% (8/28)
  7. $CRM   ... + 10.44% (8/28)
  8. $MA    ...   + 12.00% (9/1)
  9. $CI    ...     + 12.48% (8/30)
  10. $AMAT   ...+ 15.67% (9/28)
  11. $CTRL   ...+ 16.45% (9/25)
  12. $CDNS  ...+ 17.07% (8/29)
  13. $ASML   ...+ 17.94% (9/1)
  14. $CGNX  ...+ 18.86% (9/22)
  15. $PYPL  ... + 19.73% (8/31)
  16. $LRCX  ... + 21.10% (9/25)
  17. $YY      ...  + 21.49% (9/5)
  18. $OLED  ... + 22.56% (9/6)
  19. $VMW  ...  + 23.17% (8/18)
  20. $IPGP   ... + 25.51% (8/31)
  21. $ALGN   ...+ 39.11% (8/28)
Average gain for these stocks is  +15.37%.  I have indicated in parenthesis the date that the position was initiated.  Most of these stocks have been  held for  5  to  10  weeks.  

Mentoring  Program

Question you should all be asking your hedge fund managers and mutual funds that you are invested in is:

1. Has your portfolio performed as well as mine and if not why not?
2. Did your portfolio outperform the market by twice as much during the June to September period?

You all know the answer to that.  Take control of your portfolio and learn to invest yourself to outperform the market.  $QQQ  the leading index has already performed  +33%  in the last 12 months.  My 21 stocks performed   +15.37%   (80% annualized)  in less than 10 weeks. 

Schedule a  FREE 30 minutes of  "Discovery Call"  with us to see how best our individualized program can make you a profitable investor.  Just a few spots are left for new students.  Don't procrastinate and be left behind.  What are you waiting for?  Don't be left behind while the market continues to move forward.

Contact us at:

investorspotlight@gmail.com

 
Happy Trading!

Amin




   



  

Sunday, October 29, 2017

Bulls  Are  In  Charge

I have been expressing a bullish view for the market since the beginning of this year.  There has not been a major correction or any significant pull back in the market, since the beginning of this year.  The only significant retracement on the major indexes we have experienced was during the 4 weeks from June 8th to July 6th.  $QQQ  had retraced  -5%   but it bounced right back after mid July.  We continue to witness higher highs and higher lows on all the 3 major indexes that I monitor every week.  My upper range target for the  $QQQ  that I posted last week was  151  and we managed to finish the week at  151.24    

October is traditionally the start of our best performing quarter of the year.  This is the quarter that retail investors ought to stay engaged with the market.  There are lot of growth stocks that are continuing to break out during this 3rd quarter earnings report.  Here are the results of the the 3 major indexes and the leading sector performance for the last 4 weeks since Sept 29th:

  • $SPY    ... +2.58%
  • $QQQ  ...  +3.98%
  • $DJI     ...  +4.59%
  • $XLF   ...   +3.56% (Financial Sector)
  • $XLU   ...   +3.77% (Utility Sector)
  • $XLB   ...   +4.08% (Materials Sector)
  • $XLK   ...   +5.82% (Technology Sector)
Retail investors and traders should continue looking for Growth Stocks in the Technology Sector.  Year to date performance for this sector has been  +30%.  Being in the leading sector is the way to outperform the general market as measured by  $SPY  which has been  +15.29%  year to date.

Results  of  Stocks  on  Watch  List  From  Last  Week

I had highlighted  8  Growth Stocks  in my post last week that were the leading stocks in the leading sectors.  7  of these stocks were up for the week but there was one that took a deep dive of  - 12.41%  last week.  It was a Biopharma  stock.  It gapped down on Tuesday in volume that was  3  times the normal average daily volume.  Trailing stops that I had at  - 5%  loss did not trigger since the stock never traded at the trigger price.  Biopharma stocks tend to be very volatile.  One of the strategies to utilize when trading and investing in volatile Growth Stocks is to limit the size of the position to   20%  to  30%  of the initial position, until the stock proves itself.  Overall, for all the 8  stocks - 7 winning stocks and 1 losing stock - the performance was  +2.63  (+136%  annualized)

  1. $NVR   ... +0.53%
  2. $NOW  ... +0.73%
  3. $CRM   ... +1.82%
  4. $SHW   ... +1.95%
  5. $DVMT  ...+1.99%
  6. $TXN    ... +2.44%
  7. $LGIH   ... +5.58%
  8. $IONS   ... -12.41%

Mentoring  Program

Would you like to learn:

  • How to consistently select the winning Growth Stocks?
  • How to Buy the Stock Right?
  • How to Sell the Stock Right?
  • How to minimize and mitigate the Risk?
  • How to Plan Your Trade?

Schedule a FREE 30 minutes of  "Discovery Call"  with us to see how best our individualized program can make you a profitable investor.  Only a few spots are left for November.  What are you waiting for?  Don't be left behind while the market moves forward.


Contact us at:

investorspotlight@gmail.com 


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.