Sunday, October 30, 2016

Managing My Portfolio


I always remind myself that Institutions - hedge funds, mutual funds, pension funds etc - are the ones that account for over 75% of the total daily volume in the market.   They determine what the price of any given stock would be on any given day just because of their sheer size of daily trading volume.   It takes them several weeks to accumulate the full position in any stock that they favour.   When they decide to bail out on stocks during earnings and start harvesting profits, stocks will gap down in high volume.   In the last 2 weeks we observed   $EBAY  dropped  (-10%)  and  $AMZN   dropped  (-5%)  during earnings.   Because of the sheer trading volume of these two stocks during earnings, over $1 billion changed hands that day with  $EBAY  and over  $10 Billion  with  $AMZN   This amount of trading volume will drag down all the major indexes as well as stocks that you have in your portfolio.   As a retail trader and investor, I am always fully aware of the earnings calendar since that affects my portfolio.


I was  'Cautiously Bullish'  in my tone with my Oct 9th blog post.   I started raising my trailing stops on my positions to protect my profits.   On Oct 16th blog post, we were in the second week of earnings and my tone changed to   'Bearish'   I began liquidating my losing positions and stayed with technology names only.   That was the only leading sector at that time.   Last week I mentioned that I was mostly in   CASH   This week we have a lot of energy names and 2 tech giants  -  $FB   and  $BABA   reporting earnings.   How the institutions will respond is any one's guess!   I know that  November thru January  are some of the best months of the year for profitable trades.   I would much rather be in    CASH   as a position now to avoid erosion of my capital.   Most of all, I prefer to have monies available to take some bullish positions, once the major indexes trend above the   8 day ema (exponential moving average)


Stock on My Watch List


Currently all the 9 major sectors are trading below the  200 day sma (simple moving average)   That does not bode well for me as a retail trader.   We also have an elevated risk in the market with  14 distribution days   between   $SPY   and   $NASDAQ    Last week we had only 10.   I am constantly scanning for growth and trending stocks that have an RS ratings above 90 and trading above the   8 day ema  in a strongly defined channel.   Following is a list of stocks that I am currently monitoring:

  1. $AKAM
  2. $FFIV
  3. $NFLX
  4. $NOC
  5. $BHI
  6. $BAC
  7. $GS
  8. $MS
  9. $MA
  10. $PBR
I am also monitoring 2 etf's -  $EWZ  and  $DXJ   for an Option position.


Mentoring Services


We are offering a 90 minutes  WEBINAR   on:


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


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.

If you would like to reserve a spot for yourself, please contact us at:

investorspotlight@gmail.com



Be sure to check my tweets  @spotlightamin  during the week to keep yourself informed and up to speed with ever changing markets.


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.