Sunday, August 21, 2016

Bulls and Bears Stand Off


In my post last week, I had highlighted my studies on  $QQQ  index.  I indicated that after the index makes a 15% gain in 6 weeks, it trends sideways to digest the gains.  $QQQ  is still the leading index of the 3 that I monitor  ($DJX, $SPY, $QQQ)   Currently the market is at a stand still and not making much progress.  Market is still in a  "Confirmed uptrend "   We have how ever,  accumulated 10  distribution days  between the S&P 500 and Nasdaq.  That is something of a concern.  Bulls and the bears are facing off each other in the current market.  $SPY  and  $DJX  have been trading side ways for the past 5 weeks in a very tight and orderly manner.   $QQQ  on the other hand has been trading sideways even more tightly and orderly between 117-118   This is a bullish sign for the market.   Bears could however just as fast, claw the market as it did in June of this year.  All the three indexes sliced down past 50 day sma (simple moving average) all the way down to  200 day sma  within just a few sessions. 


Sector Rotation is Occuring

Institutions are very good at holding their cards close to their chest.  It takes some analyses of the sector etf's to determine where they are deploying their profits.  As a retail investor, We want to follow their lead because ultimately, they are the ones that account for 80% of the market moves on any given day.  In the month of August  (last 3 weeks)  $XLE (Energy)  has outperformed the general market by +4.5%  while the 3 indexes have been trending sideways.  $XLI  (Industrial)  + 1.69%  and  $XLF  (Financial)  +1.5% are the next in line.  

Stocks on My Watch List

Earnings is pretty much out of the way with a few retail, restaurants and some tech names due to report earnings this week.  The only headwinds facing the market is Janet Yellen with her colleagues at the Jackson Hole meeting in Wyoming later this week.  Financial sector will be facing some risks of uncertainty since no one knows what they will decide or say.  I have the following list of stocks for my followers to review.  I took the liberty of highlighting what their performance has been since August 1st:

  1. $PE      +19.2%
  2. $WMB  +15.5%
  3. $USO   +16.0%
  4. $EOG   +12.3%
  5. $PXD   +12.3%
  6. $CLR   +10.6%
  7. $CXO   +7.9%
  8. $HAL    +7.3%
  9. $COP   +6.1%
  10. $FANG +2.3%

Virtual Trades

Some of the students that I mentor, came up with the following stock trades that they placed as virtual trades to practice their trading skills.  Please follow along with them and learn from their trade ideas.

  1.  $EW Buy  @ $114.89 10% profit and -5% loss target (8/15/16)
  2.  $VIPS Buy @ 15.60 8% profit and -4% loss target (8/22/16)
  3.  $LN Buy   @ 46.00 10% profit and -5% loss target (8/22/16) 

Mentoring Service

If you would like to schedule a FREE 30 minutes of  'Discovery Call'  to explore our mentoring service, please contact us at:

investorspotlight@gmail.com

We are in the process of opening up limited slots for  September 
sessions.  Reserve them before they are gone.

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.


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