Monday, September 5, 2016

Bulls Have The Edge


We are heading into the worst month of the year in the market.   Labour Day weekend is over and this is when all the senior fund managers and traders come back to their trading desks after relaxing and barbecuing with the family.   They realign their portfolios, harvesting profits from winning positions and deploying them into trending stocks.   Earnings is out of the way since more than 90% of S&P 500 companies have already reported their earnings.   What sectors and what specific stocks will they be deploying their harvested profits into this month?   I took the time over this long weekend to scrutinize over 100 stock charts, the 3 major indexes  - $DJX, $QQQ, $SPY -  that I monitor and read some of the commentaries from my trust worthy sources.   The trend is bullish.   We had a mediocre jobs report for August released on Friday and the market moved up.   Market sent the signal that they don't anticipate a rate increase in Sept.   

I am not a  "Day Trader"  and as such my bullish outlook is for the long term.   In any  Bullish Trend   it is quite normal to also experience a  Counter Trend   For the last 8 weeks,  $SPY   has been trading very tightly within 1%  but  $QQQ   has been trading in such a manner for only 4 weeks.  I am a   Growth Stock  investor and this is a very telling sign for me.    While  $SPY   made a gain of 10% by mid July from June 27th lows,  $QQQ   exhibited strength and continued to outperform the market for a 15% gain, for 3 more weeks past mid July.   Currently,  $XLK (Technology)  is outperforming all other sectors, pretty much in lock step and barrel fashion with the   $QQQ   That is where I am focusing my attention for profitable trades this week.  


Stocks on My Watch List


There are a lot of stocks that have been consolidating for the past several weeks and setting up a flat or three weeks tight bases.   Some of these are good candidates for adding onto your current position or for making initial buys.    
  
  1. $NVDA
  2. $GRUB
  3. $BABA
  4. $ACIA
  5. $FB

Virtual Trades


In my mentoring program, my students are always asked to practice skills of trading by doing  Virtual Trades   This is a  Risk Free  way to learn to trade.   In my previous career in the airline industry,  all the pilots practiced flight operations in a   Flight Simulator   This is how they perfected their skills at flying.   Trading is very similar in that fashion too and all successful and profitable traders do this consistently.   After a while, it just becomes a habit.  Market constantly changes and the only way to keep up with it is to consistently build a  Stock Watch List  and practice virtual trades on them. 


Mentoring Service


September is an ideal month to learn and refine your trading skills.  We are filling our sessions for this month and just a few slots are left.   If you would like to schedule a FREE 30 minutes of   "Discovery Call"   to explore our mentoring services, please contact us at:

investorspotlight@gmail.com

Stop losing money trading and learn our disciplined method of building an actionable stock watch list.   Learn how to create a Trade Plan and how to mange your trades for Profit and mitigate Losses for trades that go against you.



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.