Sunday, November 27, 2016

Lessons Learnt From Our Webinar


Last Saturday on November 19th, we had a 90 minute Live Webinar presented to show:

How I Scan For Growth Stocks And How I Create A Trade Plan


I shared with the participants my very strict criteria for selecting the best of the best stocks.   Quite often I get questions as to why I have such strict standards and criteria for coming up with the Stock Watch List every week.   I am a retail trader and as such I look for only  "Rock Stars"    At any given time, I am looking for just 1 super stock to trade. That stock has to be the very best stock in a leading sector.   I am also looking for that stock to exhibit strong fundamentals and technicals.     

Currently the market is in a   "Confirmed Uptrend"   with 10 distribution days between the   $NASDAQ   and   $SPY.    We had identified 6 stocks on our watch list and I shared 2 trades with the group on   $NVDA   that appeared on our watch list.   Following are the results of the performance of 6 stocks during the last 4 sessions (the Market was closed for Thanksgiving and Friday was open half a day)

  1. $NVDA   +0.86%
  2. $FFIV     +1.49%
  3. $CFG     +1.53%
  4. $MSCC  + 3.39%
  5. $AMAT   + 3.71%
  6. $SCHW  + 4.03%

Update on  $NVDA  Trades


We had 2 trades constructed that I shared with the webinar attendees.   Following are the results of those trades:

1.  Stock Trade placed on November 16th

Trade Plan:  Entry $89  Profit Target  +10%  at  $97.90   Loss Exit at  -4%    at   $85.44.   Currently the trade is already  +5.80%  in the last 7 sessions.

Stock is extended and is trading at its upper channel.   Analyst upgraded the stock to  $100  after the stock surged    +30%   during earnings in volume   5 times   the average daily volume.   Stock will likely consolidate and trade sideways  before it surges in volume and price to attain our profit target.

2.  Credit Spread Option Trade placed on November 17th

Trade Plan:  Buy Dec (week 1) 88 put and Sell Dec (week 1) 90 put for a  Credit of 65 cents.   Risk in the trade is   $1.35

Stock is extended and we are just looking for the stock to trade sideways until Dec 1st.  We will manage the risk so we don't incur a loss of more than   70 cents   We just want the stock to stay above   $92  since the trade was filled at  $91.87   Currently the trade has attained   75%   of the planned credit.   Our goal is to close out the trade once   80%  of the planned credit is attained.


My Market Outlook


Currently I am very bullish on the market.   $DJX  and  $SPY  has been trending along the   8 day ema (exponential moving average)  in a very orderly fashion for the last 3 weeks.  They are trending along a very well defined channel as well.  

I have the following projections for the 3 major indexes that I monitor:

  1. $DJX ... 19,800
  2. $SPY ... 228.38
  3. $QQQ ...129.50
We have had more than  +6%  gains in the last 4 weeks for  $SPY  and  $DJX.   It is quite normal for the market to retrace and consolidate the gains before marching ahead.  This is the time to observe your loss targets on any position that you have.   If past behavior of the market is any indication to us, we know that these major indexes have plummeted to the   50 day sma (simple moving average)   within 3 to 5 sessions during a counter trend within the established bullish trend.



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.


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