Monday, March 23, 2015

Market Spotlight - 03/23/2015


What Time Is It In Asia? 

PHOTOGRAPH BY RYAN MCGUIRE
It's easy to forget that the US market does not perform in isolation. When we are sound asleep on Sunday night the world's 2nd largest economy, Japan, is already open for business.  Keep in mind that on Monday, Japan takes its lead from how US markets performed the previous Friday.  Given how our markets looked last week, I imagine we'll see some gains in Asian markets come sunrise.

The Benefits of Low Oil Prices
With a depressed currency, Japan's exports are getting cheaper by the day. Also, with most of its oil coming from OPEC, Japan really feels the pinch when crude prices rise so we aren't the only ones benefitting from the low price of oil.  As a result, the Nikkei has rallied over 12% this year while the US market is up just 2%.
What I'm Looking At 
This week I will just focus on the strongest sectors. According to IBD®, we still have a very high count of distribution days. This high count is a reflection of institutions selling positions and harvesting profits. I am only looking at stocks that are very liquid and currently trading at 8 day EMA.  Here are 3 specific examples of US stocks and 1 Japans ETF that meets my very strict criteria:

US:

$AMGN
$QRVO
$COST

Japan:

$EWJ

It is critical to have a firm trade plan in place before executing any position to help mitigate potential losses while giving yourself the best shot at a profit..  You may want to review my recent blog series to help in that regard. 
IBD just called for a “Market in Uptrend” as of close. We are not completely out of the woods yet so I'm exercising caution and take positions only in the very best performing sectors.

Establishing a vibrant and collaborative community was one of my biggest reasons for creating this blog so your comments are welcome!  Also, I will be at the Clearwater IBD Meetup and would love to meet face to face with anyone local.

Amin Hemani

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.