Sunday, October 16, 2016

Bears are Prowling


We are heading into the 3rd week of October and it could be a gut wrenching week.   It is one of the busiest weeks with earnings being reported by the banks, airlines, rail roads and some tech names like  $AMZN  and  $EBAY.    Market could either surge ahead or come crashing down like it did last week.   Last Monday October 10th, the leading index   $QQQ   was hovering above the    8 day ema (exponential moving average)   only to come crashing down to   34 day ema   by the end of the session.   Bears were definately in charge and none of the 9 major sectors were spared.   Currently only   $XLK (Technology)   and   $XLE (Energy)    are the leading sectors.   This is where the retail investor ought to be looking for opportunities in the market.


Market Outlook


My outlook of the market is very dim heading into the third week of October.   7 of the 9 major sectors are already trading below the   50 dma (day simple moving average)    4 of the 7 sectors   ($XLV (Health Care), $XLF (Financial), $XLU (Utilities) and $XLP (Consumer Staples)   are already heading into the bear territory, trading below or touching the   200 dma    How the institutions react to the earnings report this week will determine the direction of the market.   Using history as a guide,  I have to remind myself that major market crashes have occurred during the month of October.   It is also the month when in the year 2014,  $QQQ   surged over   +11%   from October 16th through Dec 5th   This requires for me to be totally prepared for either of those scenarios.   I would suggest to my followers to raise their trailing stops to protect profits in their positions but also to have a ready   "Watch List of Stocks"    to execute a trade, should the market take off like it did in 2014 and 2015 October


Mentoring Services 


We are planning on offering a  ONE TIME  special webinar for 90 minutes session on:

"How I Scan For Growth Stocks and How I Create a Trade Plan"


It will be a very limited class size for this webinar.  If you would like to reserve a spot, please contact us at:

investorspotlight@gmail.com


We will post the details of the date and time as soon as we fill the class.   There are just a few spots left so don't procrastinate.   You will walk away from the session with a    "Stock Watch List"    and a   "Trade Plan"


Learn to be a successful and a profitable trader/investor from one of the seasoned trader/investor and most dynamic speaker and an award winning educator.   

Be sure to check my tweets   @ spotlightamin   Monday morning before market opens for some of the stocks that are on   "My Watch List"



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.


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