Sunday, September 25, 2016

Market in Confirmed Uptrend


What a difference a week makes?   For the past several weeks,  $SPY  and  $QQQ  have been trading sideways.   Bulls and Bears have been playing   "Tug O War"  only to have bulls  GORED  two Fridays ago on Sept 9th.   Janet Yellen did her   YELLING  latter part of the week and spooked the bears into hiding.   $QQQ  continued to march on past the resistance of  $118.12  in volume 40% higher than average daily volume and surged above the  8 day ema (exponential moving average)   In the last 10 sessions,  $QQQ  has continued to lead and has surged  +3.54%   $SPY  on the other hand is stuck below the  50 day sma (simple moving average)  


My Market Outlook 


For the past several weeks, most of the stocks on  My Watch List  have been in the  Technology Sector  and most of the winners have also been in this sector.   That is understandable since  $QQQ  has been the leading index and   $XLK (Technology)   has been the leading sector.   All that changed on Monday September 19th when the market opened.   $XLF (Financial)   gapped down  -18%    Over  $Billion  changed hands for 5 days in a row last week in the sector.   You would have thought that all banks were going out of business!   Where did all that money get invested by the institutions?   Would you believe it was in the   $XLU (Utilities)?   Since there is going to be no rate increase  by the FEDS  until possibly in December,  institutions have chosen to invest their profits into dividend paying stocks.   $XLU   is up  +5.12%  in the last 2 weeks

I took the time this weekend to study the markets and do some analyses while the family was out for the day @ Disney Theme Park in Orlando.   I so desperately wanted to take part in it but than I had to remind myself that we just had a   "Follow Thru Day"   According to  Mr. William O'Neil of IBD   he suggests that one must buy something so as to dip your toes back in the market.   It has to be a Growth Stock that meets most of the  CANSLIM  criteria.    It is a critical time in the market since some good growth stocks just take off on such days and escape away from you from entering into a position at the right time for substantial gains.   This is one reason why every trader and investor has to stay engaged with the market even during times when the market is trending sideways.


IBD (Investor's Business Daily) Winning ETF Strategy


I am an accomplished and award winning educator and my experience as a teacher, mentor and a coach has taught me that some of the best students always prepare their  Stock Watch List  every week - regardless of the market condition.   They also do  Virtual Trades  to keep their trading skills sharp.   For the past several weeks, market has been trending sideways and most traders have lost patience.   Disciplined and patient traders in the mean time lay in the wait for the right stock to come into their view finder.   It is like a cheetah waiting patiently in the tall Savannah grass for the impala deer to come by within their striking distance for a successful hunt.

One very successful strategy to adapt is to buy   $QQQ  on a follow thru day when the market is in a   Confirmed Uptrend    Reduce your exposure to 50% of your position when the market condition changes to   Market under Pressure   CASH out your entire position when the market conditions deteriorate to   Market in Correction   This strategy has out performed  $SPY  since 2005.  This strategy produced an estimated cumulative return from   October 20th 2005 to June 30th 2016  of  +96%    while  $SPY  did only  +78%  over the same period


Mentoring Services

If you would like to learn our process of identifying winning growth stocks, sign up for our mentoring services.  We are planning on offering a one time special webinar for 60 - 90 minutes session on:

"How I scan for Growth Stocks and How I Create a Trade Plan"


We have a very limited class size for this webinar.  If you are interested in attending this webinar, please contact us at:

investorspotlight@gmail.com


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.