Why I Am Bullish This Week

Historically May is the beginning of a 5 month slow season in the market for growth stocks. Last week however $SPY surged +2.31% and $QQQ srged +3.44% in just 5 sessions. Institutions began harvesting their profits from defensive dividend paying stocks across all the 9 SPDR sectors. Currently all these 9 sectors are trending above the 50 day sma. 50 day sma is also above the 200 day sma. Some sectors are strongly trending along the 5 day sma. This is a sign of a very bullish outlook from the institutions and I follow the institutions.

In mid Feb of this year, $SPY and $QQQ surged 5% within 5 sessions from the lows and went on to make further gains for the next 6 weeks. Very similar incident occurred in Oct 14 and Oct 15. Most traders I talk to lately are just fed up with the market just trending sideways. Some of them have just given up. Market is full of surprises and I think it is always best to keep your skills sharp and do virtual trades until an opportunity presents itself.

My Stock Watch List This Week 

1. $EDU  ($41.22 entry) Plan 6% profit/-3% loss 
2. $MXL  ($19.86 entry) Plan 6% profit/-3% loss
3. $NTES ($174.55 entry) Plan 9% profit/-4% loss
4. $AYI   ($249.77 entry) Plan 6% profit/-3% loss
5. $FB    ($117.09 entry) Plan 6% profit/-3% loss
6. $ALGN ($78.60 entry) plan 6% profit/-3% loss
7. $CTXS ($85 entry) plan 6% profit/-3% loss
8. $ZBH  ($119 entry) plan 6% profit/-3% loss
9. $MAS  ($31.32 entry) plan 9% profit/-3% loss

Some of these stocks were on my watch list the last two weeks and orders were triggered but you can follow along with my trade plans for educational purposes. I don't expect all the orders to get filled but I caution my followers here as well as on Linkdin not to chase the trade. Most stocks do retrace to their buy points. Be patient and most of all, do your due diligence.  

Happy Trading!

Amin