Sunday, November 6, 2016

CASH is KING


I had a lot of my readers question my judgement last week when I indicated that this might be a good time to be in   CASH   Two weeks ago we had 10 distribution days and last week it mounted to 14.   Currently it is 15.   The bulk of those distribution days came in the last 30 days.   That is quite alarming.   As a Retail Trader who manages his own account,  I consider this to be a   "Market in Correction"   I just tweeted the following statement from  Jesse Livermore ( the greatest stock trader of our time)

"Every once in a while go to CASH, take a break.   Don't try to play the market all the time.   Too tough on the emotions"      



My Market Outlook


More than   75%   of the   S&P 500   companies have already reported their earnings and this week we will have more retailers report their earnings.      Stock Charts of retailers like   $JCP,  $SHLD,  $M,  $TJX   and the   $XRT  (Retail etf)  don't inspire much confidence.   They have been on the downtrend since mid August (back to school season) and now they are all trading below the   200 day sma  (simple moving average)   All the 9 major sector etf's are also trending in a downward slope and heading close to the    200 day sma    As a growth stock investor, I also monitor the small cap and mid cap growth stocks indexes   ($IVW,  $IJK,  $IJT)   and they are all pointing similarly in a down ward slope.   The only good piece of news that I have is that the transportation etf's -   $DJT   and   $IYT   are trading above the    50 day sma   There is a Dow theory that suggests that:
 
 "Transports generally indicate the strength of the economy"  

Quite frankly I prefer to look at the individual stock charts and sector etf's to get my sentiments of the market.

The coming week is an   Election Week   and everyone can expect that the market will have very high volatility.   This is the time to raise your trailing stops to conserve profits in a trade but also liquidate losing positions and build some   CASH   in your portfolio.   Continue to build your Stock Watch List and stay very engaged with the market.   Opportunities will come and you want to be prepared to take a position at the right time and at the right price.


Special 90 minutes Webinar


The subject of this Webinar will be:

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


This special webinar will be on  November 19th @ 2.00 pm  (Eastern Time)


The session will be recorded and made available to all participants.  The cost of the webinar will be  $49.00


You will walk away from the session with a   "Stock Watch List"    and a   "Trade Plan"


I shall be sending out the   link   for those of you that have already indicated an interest.   It will be a limited class size so hurry and don't procrastinate.  It will be a high energy and fast paced presentation.   Send in questions that you would like addressed at the Webinar.


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.