Sunday, May 22, 2016

My Stock Watch List for May, 23 2016


Currently US market is choppy and not making any headway. It has been a year now since We had an all time high on all major indices $DJX/$SPY/$QQQ. We are showing signs of the end of the 7 year bull market run. Growth stocks are not making the 20% to 25% profits when they break out like they used to in 

2010/2011/2012/2013


Most IBD style CANSLIM growth stocks make a 5% move from breakouts before they start rolling over. I can understand the frustrations of holding onto such stocks. There are however opportunities in the US market to do profitable trades with growth stocks. It is best to lower your expectations for profits and most of all, trade very liquid stocks only. You are likely to not get whip sawed because of liquidity. 

I come up with a selection of stocks every week that are on my watch list and currently I plan just a 6% profit target initially. I also plan to exit the trade with a contingent stop loss order just @ -3% below the entry price. This way I preserve my trading capital. Losses will occur in stock trade if the market turns south. You have to be disciplined not to allow a -3% loss to turn into a -6% or greater.


Currently this week my stock watch list (ideal entry point indicated in parenthesis) is :

  • $AYI(243.21)
  • $ALGN(76.08)
  • $FB(117.09)
  • $MLM(178.77)
  • $ZBH(119)

I don't expect all the orders to get filled and that is OK. I always caution my followers on Tweeter (@spotlightamin)  as well as on Linkden, not to chase the trade. Most stocks do retrace to buy points. Patience is the key.

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.