Sunday, August 20, 2017

Should  You  Bail  Out  Of  The  Market

We had a market correction on Thursday August 10th with a  "distribution day"  but it bounced back for the next 4 days only to follow with another  "distribution day"   on Thursday August 17th.   Lot of my readers and followers were expressing  concerns and  feelings  that the market had topped.   They wondered if they should not be in the market at this time.   They kept saying that August is typically a bad month in the market.   I do agree with them since August performance has been   +0.10%   looking over the average performance over the last 50 years.   I also reminded them that  August of 2014  however was a stellar month with over  +4.00%  performance for the month.   How often do you get that kind of a performance during the summer months?   I sensed that kind of a question in their minds because the data I presented was just brushed off by them.   July of 2015 and 2016 were equally stellar months too according to the data.   You have to be data driven in the market and not your  "feelings"   That is why I spend Saturdays and Sundays to study the market and scrutinize the stock and index charts for clues.

Market  Conditions

Currently we have 14  "distribution days"   according to IBD(Investors Business Daily)   They identify market pulse as  "Market Under Pressure"   This should be a signal to the retail investors to start selling into strength and accumulate CASH.   If one has to take a position in a stock, it should be done with a very small position and only in the top performing leading stocks.   Personally I would go a step further and limit my losses and capture the profits with a trailing stop on all existing positions. 

In my post last week, I had mentioned that our bull market is still intact.   We are continuing to see higher highs and higher lows on the 3 major indexes.   What we are witnessing right now is the retracement and a counter trend in the overall uptrend.   Here is the data for   $QQQ   for the last 3 significant major distribution days we have witnessed during the last 3 months:  
  1. 5/17 ...  -2.54%
  2. 6/9   ...  -2.54%
  3. 8/10 ... - 2.14%
I still heard from my readers  "Oh but this time it is different".   My analysis shows that we had a cluster of  "distribution days"    in June/July/August  when the   $QQQ   dropped significantly as shown below:
  1. 6/8  to 7/13 (17 sessions) ...  -5.14%
  2. 7/26 to 8/18 (23 sessions) ...  -2.57% 
$QQQ   would have to drop another  -2.57%  down to  $139.40 to match the performance we had between  6/8 to 7/13.   Market suddenly doesn't look so bad when you start looking at the data and keep your emotions at bay.

My  Performance  As  A  Hedge Fund

No ... I am not a hedge fund.   Last Monday, I listed 34 leading growth stocks (hedge funds would have that many stocks in their portfolio) on twitter and suggested to my readers to be defensive and have trailing stops on those stocks.   Here are the results of the performance of those stocks for the week.   6 of the 34 stocks were stopped out with the trailing stops to mitigate the losses.   They r listed first, followed by 28 stocks that have continued to go higher or have traded lower but not stopped out yet.   Trailing stops have been adjusted up wards for next week, should the market retrace some more.   I have indicated in parenthesis, how much was the loss and how much was the gain for the week of 8/14 to 8/18 
  • $AMP   (-$0.36)
  • $AON   (-$0.39)
  • $AGO   (-$0.07)
  • $UNH   ($1.02)  
  • $PETS  ($2.76)
  • $VRTX  ($2.78)   
  • $HDB   ($0.73)
  • $MA     ($2.59)
  • $V        ($2.42)
  • $PGR   ($1.42)
  • $PYPL  ($1.40)
  • $CBOE  ($0.07)
  • $ALL    (-$1.03) 
  • $ABMD ($0.77)
  • $ALGN  (-$4.95)
  • $CI       ($2.65)
  • $CNC   ($1.35)
  • $GRUB (-$0.59)
  • $ANET (+$6.32)
  • $IPGP  ($1.97)
  • $MNST ($0.23)
  • $RACE ($3.95)
  • $CDNS ($0.61)
  • $ASML ($1.07)
  • $FB      (-$0.67)
  • $BABA ($15.80)
  • $RCL   ($1.59)
  • $CCL   (-$0.02)
  • $NCLH (-$0.99)
  • $LMT  (-$4.55)
  • $RTN  (-$2.45)
  • $BA     ($0.89)
  • $MRCY ($0.89)
  • $NVR   ($-22.15)
If I was a hedge fund manager and i had all these leading stocks in my portfolio, my performance overall would be just  -0.6%  for last week when we had piled on 5 more  "distribution days"   That is a pretty impressive performance if I must say so. 

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Happy Trading!

Amin


  
     

Sunday, August 13, 2017

Is  The  Rally  Over?

There is so much talk about North Korea in the media.   Everyone is screaming   "Sky is Falling".   Market took a tumble on Thursday August 10th and lot of my readers were asking me if they should bail out of the market.   They were concerned about what was going to transpire with Mr. Trumps comments    "Fire and Fury like the world has never seen before".   Let me just remind everyone that while the 500,000 US and allied troops had gathered to drive our Saddam Hussein out of Kuwait, people were just as concerned than that the market would tumble.   On the contrary, We had a  "Follow thru"  day instead and the market just took off.   All the rhetoric that we hear from both sides of the conflict is simply noise in my view.   It is a distraction and we should instead use that time to build a Stock Watch List and a Trade Plan to execute.   I like to be data driven in my decisions about the market.   How I feel about the market is irrelevant.   Lets look at the data of the market and see what we can learn from it. 


Market  Data

Currently we have 10   "distribution days"   according to the  IBD(Investors Business Daily).   That should give us a pause for caution in the market.   It is a risky condition right now to take on  any new position.   Any stock position that you may have now, should be maintained with a trailing stop in place.   This is the time to be selling defensively.   Looking at the long term charts of the 3 indexes  -  $DJI, $SPY  and  $QQQ,   I find that the bullish market is still intact.   What I am seeing is that these 3 indexes are continuing to attain higher highs and higher lows since the elections on November 8th.   There are brief one day periods of market corrections along the way.   Here are the results of the brief one day major correction in high selling volume we had since March of this year:
  1. 3/21 ... $SPY -1.28%   $QQQ - 1.52%
  2. 5/17 ... $SPY - 1.77%  $QQQ - 2.54%
  3. 8/10 ... $SPY -1.40%   $QQQ - 2.14% 
Market recovered the next day after these one day corrections.   If you had trailing stops on your positions, you would have been protected on Thursday.   We had an extended correction for a month between  6/8  and  7/6  but  $SPY was only  -1.33%  and  $QQQ was  -5.14%   during that month.   Monday August 14th is a new day and a new week.   Have the trailing stops in place and be prepared to sell defensively, should the market go into an extended correction like it did in June.

Stock  Watch  List

We are approaching the tail end of our earnings reports for the second quarter.   We have a lot of retailers like $WMT, $TGT, $URBN, $LB, $GPS $TJX, $ROST, $AAP as well as $BABA and $HD slated to report earnings starting out on Tuesday.   Retailers have not done very well and that theme will once again play out this week.   That will put some pressures on the market this week.  

$XLK(Technology Sector)   has been the leading sector this year.   It had been consolidating for the past 3 weeks until Thursday Aug 10th when it crossed below the  34 day ema(exponential moving average).   $XLU(Utilities Sector)  has been the leading sector for the past 2 weeks.   Institutions are parking their profits into dividend paying stocks.   Lets monitor our stock watch list and see where the institutions are deploying their cash. 

Here are some stocks I shall be monitoring this week:
  • $AMP
  • $V
  • $MA
  • $PGR
  • $VRTX
  • $RCL
  • $IPGP
  • $PETS
  • $ANET
  • $ABMD
  • $MNST
  • $RACE
  • $ASML
  • $PYPL
  • $ALGN
  • $FB
  • $BABA
  • $GRUB
  • $CDNS
  • $CBOE  

Mentoring  Program

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How I Select Winning Stocks.

How I Trade them to Outperform the Market.

Enroll in out  "Mentoring Program"

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Happy Trading!

Amin

    

     


Sunday, August 6, 2017

August  Will  Be  A  Challenging  Month

We are nearing the end of the 2nd quarter earnings season, with over  80%  of the  S@P 500 companies already having reported their earnings.   Increased sales and increased earnings is what drives the price of the Growth Stocks up.   Month of July was a stellar month for the Growth Stocks.   If you had stayed engaged with the market during one of the worst months of the year, you were able to walk away with a sizable gain to your portfolio in July.  

Why am I than cautioning my readers about the month of August?   Lets look at the data and let that drive our decision making process in the market.   Market took off soon after the elections on  Nov 9th 2016  and most of the traders were completely taken by surprise.   They missed the initial rally.   We may have a very similar situation occur in August.   I would like my readers to be able to take the advantage of the opportunity to profit if that does happen again.   Here are the results of the performance of the 3 major indexes since the   Nov 8th  "follow thru"  day: 

  1. $SPY  ... + 15.55% (+18.66% annualized)
  2. $DJI   ...  + 20.51% (+24.6%  annualized)
  3. $QQQ ... + 26.54% (+31.85% annualized)
August is also one of our poorest performing months and last year the market consolidated for 5 weeks.   We could face a very similar situation this year.   There is also the possibility that the market could correct  -5%   and  $DJI   could drop a 1,000 points.   This is in the realm of the possibilities.   $QQQ   did drop  -5%   between  6/8  and  7/6  of this year.    Utilizing trailing stops on your winning position would be the prudent thing to do this month.

Current  Market  Conditions 

There is a lot of noise in the market right now with the political rhetoric of building the wall south of our border and having a major reshuffle of the white house staff.   We r not getting any of the Presidents major agendas through the congress.   There is debt ceiling to be concerned with and who knows when Janet Yellen will start  YELLING   raise the rates ... raise the rates ... raise the rates.   All I know is data.   $DJI  keeps going up a 1,000 points every other month since the end of October  2016.   Mexican stock market is roaring and is  +28%   and  the Indian stock market is  +30%   year to date.   Price of oil is staying within  +  or  -  10%  of  $45,  depending on what happens to the price of the US dollar.   Oil is priced in US dollar.   $UUP (proxy for the price of US dollar)  is  -8.60%  for the year.   For the past 13 sessions,  $SPY,  $QQQ  and the leading Technology Sector  $XLK  has been trading tightly in a sideways pattern.   They are like coiled springs and they could pop either up or down.   The following 6 Growth Stocks (small and mid cap) etf's are also trading tightly for the past 13 sessions:

  1. $EEM
  2. $IVW
  3. $EWB
  4. $VUG
  5. $IWF
  6. $VGT
Small and mid caps have to participate in the market in order to sustain this rally.   It would worth watching these etf's and the major indexes to see where the institutions are going to be participating with their purchases.   Look over my Twitter @spotlightamin first thing on Monday morning August 7th,  for a list 22 stocks that I shall be monitoring at market open.   Some of them have surpassed their ideal buy point and may be good candidates for a conservative short term Credit Spread Option Trade.

Mentoring  Program

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How I Identify Winning Stocks Consistently and How I Trade to Outperform the Market


Enroll in our  "Mentoring Program"   There are very few limited spots left for the August classes.   Reserve your spot now.   Last quarter is traditionally the best quarter in the market.   Don't procrastinate and take control of your financial future.   Your financial advisor is not doing you any favours.   They don't know How to Trade or Invest wisely for you.

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Happy Trading!

Amin


Sunday, July 23, 2017

Why  I  Stay  Engaged  With  The  Market

July is traditionally a weak month in the market.   Over the last 50 years, market has done just   +0.32%   on an average for the month of July.   If you listened to the media  "GURUS"  on the financial network TV, they would have said   "Sell in May and Go Away".   What do they know?   I don't consider them to be the experts.   In 2016, we had a  "Follow Thru"   day on July 1st and the  $QQQ  was + 7%  for the month.   Media  "GURUS"  were wrong and they never admitted to that.   I was on a 2 weeks transatlantic cruise in June of 2016 but I stayed engaged with the market.   It was a very frustrating experience with the internet on the cruise ship.   It was unreliable and expensive.   At times I got up at 4.00 am just to gain a reliable access to the internet to review the market and to scrutinize the stock charts.   I am glad that I stayed engaged with the market.   I was able to take positions in the stocks that were on my Watch List and profit from it handsomely as a result. 

Market  Performance  for  July 

I learnt a very good lesson last year.   There was nothing but doom and gloom in the news media last year about Brexit or Grexit and yet the market took off on July 1st for a  +7%  gain in  $QQQ.   2017 year is no different.   Mr. Trump is being investigated by  Mr. Mueller,  North Korean leader keeps firing off missiles towards Japan,  OPEC keeps soliciting its members to cut production of oil and Iran is continuing on its quest to attain a nuclear weapon.   I consider this to be the noise in the market.   It is best to just make your decisions based on the market conditions and what the stock charts reflect.   Your decisions in the market has to be driven by the data.   Everything else is noise.   Here is what the performance of the 3 major indexes and the leading Technology Sector  ($XLK)  is for the first 3 weeks of July:

  1. $DJI ...   +1.08%
  2. $SPY ...  +2.10%
  3. $QQQ ... +4.70%
  4. $XLK ...   +5.03%

Stocks  on  My  Watch  List

Last week I had identified 3 stocks that I was monitoring.   Their performance for July is highlighted below.   They have acted very well for the past 3 weeks.   I have identified their ideal pivot target prices in brackets.   According to the   IBD (Investors Business Daily)   rules,  one should only take a position in these stocks if they punch thru the pivot in volume atleast 40% above their normal daily average volume.

  1. $AMAT ...   +15.31% ($47.96)
  2. $LRCX  ...  +15.63% ($167.15)
  3. $NVDA  ... +16.28%  ($168.60) 

Mentoring  Program

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How I Identify Winning Stocks Consistently and How I Trade to outperform the market


Enroll in our  "Mentoring Program"
July classes are filled.  There are just a few spots left for the August classes.   Reserve your spot now and don't procrastinate.   Learn to trade profitably with our mentoring program.

Schedule a FREE 30 minutes of   "Discovery Call"   with us.  Contact us at:

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Happy Trading!

Amin

Sunday, July 16, 2017

My  Market  Observations

Two weeks ago, it appeared that the institutions were rotating out of the Technology Sector and into Health Care, Transportation, or Home Builders sector.   On Friday July 14th,  $JPM,  $C  and  $WFC   reported earnings and the market did not react very favourably.   That put a dent in the Financial Sector.   Since the institutions primarily dictate the movement of the stocks, it is prudent for retail investors to monitor the stocks on their Watch List.    $CPA (Copa Airlines)  broke out on Wednesday  July 12th  in volume that was twice the normal average daily volume. Stock was being accumulated by the institutions soon after the July 4th holidays.   They favoured this stock out of all the other airlines.   Retail investors should have made the decision to follow the institutions and start accumulating this stock on Wednesday July 12th  when it punched through its resistance of   $125.78 (buy point of   $125.88  which is 10 cents above the resistance).   Volume was the confirmation signal that the retail investors should have been paying attention to.        


Market  Status

I still have a bullish bias towards the market.   Markets don't always go straight up and there is always a counter trend in a bullish trend before the market adjusts and goes back into its uptrend trajectory.   Currently,   IBD(Investors Business Daily)   has   "Market Uptrend Resumes"    as a market status.    Volume  on the major indexex ,  $SPY   n  $QQQ  is low and we generally would like to see volume higher than average daily volume when the market resumes its uptrend.   Don't let that stop you from taking a small position in the leading stocks that are in the leading sector.   Last year we had a  "Follow thru"   day on July 1st  and the market just took off for a   +10%   gain within 6 weeks.  


Stocks  to  Monitor  This  Week 

My analysis of the market performance since the beginning of July is as follows:
  1. $DJI   ...    +0.74%
  2. $SPY  ...   +1.38%
  3. $QQQ  ...  +5.93%
  4. $XLK  ...    +4.64%
$XLK (Technology Sector)  has been the leading sector during the last 2 weeks.   We are starting out with the second quarter earnings season this week.    $V, $MSFT, $SWKS   and   $NFLX  are just some of the stocks that will be in the earnings confessional booth this week.   They have been up  +4%  to  +10%   in two weeks of July,  leading up to the earnings this week.   Their earnings will propel the market up or down, depending on how the institutions react to the earnings.   These are the stocks that I plan to watch this week.   Their performance for the last 2 weeks is highlighted.  

  • $AMAT    +12.46%
  • $LRCX    + 12.93%
  • $NVDA    +18.39%    

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Don't procrastinate and miss out on the rally.   $QQQ  has been up  +27%   since  July 18th 2016.   Has your portfolio done that?

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Happy Trading!

AMIN



Sunday, July 9, 2017

My  Market  Outlook


In my blog last week I suggested that we should take a breather during the shortened   "Independence Week"  in the market.  Every once in a while, it's best to take a break from the market and observe it from the sidelines while the institutions slug it out.  They are the elephants in the room.  They account for  80%  of the total volume of trading every day in the market.  They are the ones that set the tone of the market.  You and I as individual retail investors, should observe their behaviour and follow their lead. 

Here are some of my observations.   Since the beginning of this year, the leading index has been the    $QQQ.   The performance of this index was  +21%  from Jan 3rd to June 2nd (22 weeks).  On Friday June 9th, We had a major  "distribution day".   $QQQ   dropped by  -2.5%   in volume that was 6 times the normal average daily volume.  I found that very concerning.  We have not had such a heavy volume during a   "distribution day"   since August 24th 2015.  The index dropped down by  -4%    on that day.  Institutions have been bailing out of the $XLK (Technology Sector) in the last 4 weeks and harvesting their profits.   Since the  June 9th    "distribution day",   we know for certainty, where the institutions are deploying their harvested profits.   In the last 4 weeks, this is what the data suggests to me:

  1. $QQQ ...  - 4.10% 
  2. $XLK ...    - 4.23%   (Technology Sector)
  3. $XLF ...    +8.43%   (Financial Sector)
  4. $DJT ...    +3.89%   (Transportation Sector)
  5. $XLV ...    +2.83%   (Health Care Sector)
As Retail Investors, we should look for opportunities in the leading sectors where the institutions are rotating into after harvesting their profits in the leading technology sector of this year.

Stocks  to  Monitor  This  Week

  • $WFC
  • $JPM
  • $WFC
  • $C
  • $HDB
  • $DAL
  • $AAL
  • $LUV
  • $CPA
  • $RCL
  • $FDX
  • $AET
  • $UNH
  • $MCD
  • $PKG
  • $NVR
  • $KBH
  • $MDC
  • $TOL
  • $PHM

Mentoring  Service

Now is the perfect time to enroll in our mentoring service.  Our July and August spots are filling up fast.  Secure your mentoring spot before they fill up.  

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Schedule a FREE 30 minutes of   "Discovery call"   with us.  Learn how best we can coach you and mentor you.  Let us show you how we select our winning growth stocks and how we monitor them.  You can outperform the general market.  Get rid of your hedge fund managers and invest in yourself instead.


Happy Trading!

Amin



Sunday, July 2, 2017

Independence  Week  July 4th - July 7th


July 4th is the Independence Day for us in the United States.  We will be celebrating it on Tuesday with fire works and cook outs with the family gatherings.  It's also a good time to give thanks to the markets for allowing us as traders and investors to have prospered in the first 6 months of 2017.  Following are the highlights of the performance of the major indexes for the first 6 months of 2017:
  1. $DJI ...    +8.03%
  2. $SPY ...  +8.17%
  3. $QQQ ... +16.17%

July 7th is the Independence Day for people living in Tanzania, East Africa where I grew up.  This week has a very special meaning for me personally as such. United States has been my home since 1969 and it has afforded me the opportunities to excel in my professional, business and personal life.  I am glad that I made the decision to become the citizen of United States.  I am in my element, living and working in Florida and sharing my expertise of the markets with my readers and followers.  I invest and trade Growth Stocks and I utilize IBD (Investors Business Daily) principles.  Anyone utilizing this methodology, should have been able to duplicate what the  $QQQ  index has done for the first 6 month of this year.  At this rate, one should be able to double the portfolio within 4 years. 


Market  Outlook  July 4th - July 7th


Market took the bearish turn 3 weeks ago on Friday June 9th.   $QQQ  dropped by  -2.5%   in volume that was 5 times the normal average volume.  It was concerning that most chip stocks and internet related stocks were being sold off by the institutions that day.  It took first 5 months of the year for the  $QQQ  to attain a +21%  gain.   -12%   of that gain was wiped off within one day on June 9th.  I had tweeted trailing stops the following Monday as suggestions for 38 of the winning stocks.  34 of those winning stocks were stopped out with profits.  Trailing stops enabled to capture more profits and limit the losses from institutions selling them off in the next 3 weeks.  There was sector rotation going on as of June 9th.  Institutions had parked their profits in dividend paying stocks in the  $XLU (Utilities Sector)  and   $XLP(Staples Sector)  from harvesting their profits from the   $XLK(Technology Sector).     Last week it became pretty evident with institutions deploying their harvested profits from the technology sector into  $XLV(Health Care)  and  $XLF(Financial) sectors.


Stocks  on  My  Watch  List


Currently the market conditions have worsened and we have 10  "distribution days".   This is not the time to be stepping into the market.  Personally I have gotten out of the market and have only one position  $ATHM  at  $45.05.  This would be good time to watch the market from the sidelines and conserve  CASH.   Here are the stocks in Health Care Sector that I shall be paying attention to this week.  This is a short week in the market with Monday being half a day and market closed on Tuesday.  I plan to relax and just chill this week.  I suggest that you also might want to do the same.

  • $ABBV
  • $ABMD
  • $AMGN
  • $ALGN
  • $BSX
  • $COO
  • $CELG
  • $EW
  • $GILD
  • $PRAH
  • $UNH


Happy July 4th !

Amin
    

Monday, June 26, 2017

Don't  Invest  With  Hedge  Funds


I am sure I have struck a nerve with some hedge fund managers with my heading.  I expect some of them to shoot me an email or respond to this blog defending their case.  That is OK by me.  Some Retail Investors who have invested their  401K's  and retirement monies in a mutual fun will be offended by this post too but I want to share with my readers the data I have.  Hopefully it will be an eye opener for most of you and hedge fund  professional managers. 

Some of you who know me very well in person or those of you that have interacted with me online know that I have been an avid reader of   "Barrons"   magazine for over a decade.  I trust the data they have because it is very well researched.  On June 19th, they published a list of 100 top hedge funds and their performance details.  What struck me was that in 2016, the average performance of these hedge funds as compared to the general broad market as measured by  $SPY  was:

  • Hedge funds ... +11.74%  (not including their fees)
  • $SPY            ... +11.96%  (no fees)

Excuse me!  Why would you want to invest your portfolio with a hedge fund if all they can do is worse by   - 0.22%   than what the passive investment in the general broad market?  You all should be asking this question.   To add insults to the injury, they have the nerve to charge you a fee of  +1%  to  +2%  of your account for handling your account.  If you have a portfolio of  $100,000  You are essentially paying them  $1,000 to  $2,000 to help you  lose  money.  Get smart and fire your hedge fund managers and instead spend that money to get educated by a successful mentor.

Growth  Stocks  Investment  Will  Outperform 


I am a Growth Stock Investor and a Trader utilizing a proven method prescribed by   Mr. William J. O'Neil (founder of Investors Business daily).    If you follow his system, you can outperform the market   2  to  2.5  times better.  It's a system with a lot of rules though.  You have to take the time to learn the rules the hard way with trial an error doing it yourself or you can enroll in our mentoring program to get you up and running with confidence.  It is a set of skills where you learn to:

  1. Identify the leading stocks in a leading sector.
  2. Identifying the  "Goldilock Zone"  as a buy area.
  3. Understanding the conditions of the market and the right time to execute an entry.
  4. Learning to get out of the stock at appropriate time to mitigate losses.
  5. Harvesting profits according to your Trade Plan.

Virtual  Trades


In my mentoring program, one of the things that I have my students do is  "Virtual Trades"   These are the trades that you execute on a virtual platform of your brokers.  There is no money at risk and you are placing these trades as if it is done with your real money except it is done with virtual money.  This is to help them practice,  just as professional football players practice in the field or pilots training in a simulator.  Here are some trades that you  can place Monday June 26th as   "Virtual Trade"   to help you sharpen your skills of trading and help you evaluate your own performance.  They may not all get filled on Monday but you can continue to place them every day this week until they get filled.  Look over my Twitter @spotlightamin  for any updates that I may have on these trades.  Plan for  +10%  for profit target and  - 4%  as a loss target

  1. $STMP ... Entry $146.70 
  2. $GRUB ... Entry $ 46.50
  3. $HQY   ...  Entry $ 51.50
Don't ever chase a trade.  Have your rules for profit exit and loss exit defined like I have done here and abide by them.  I will update you on these trades on my tweets when I see it appropriate.  You don't want to hold onto these trades during the earnings report.  You want to exit prior to earnings if none of your targets are met.

Mentoring  Service

Now is the perfect time to enroll in our mentoring service.  We have very few spots left for July.

Contact us at:

investorspotlight@gmail.com


Schedule a FREE 30 minutes of  "Discovery Call"  with us. Learn how best we can coach you and mentor you to help you out perform the market.  Get rid of your hedge fund managers and invest in yourself instead.

Happy Trading!

Amin





        

Sunday, June 18, 2017

How Did I Know The Market Was Going To Tumble on  Friday June 9th?


Actually I did not know that.   No one can predict what the market will do on any given day.   There will be some out there that will claim that they can accurately predict the market tops or the market bottoms.   I strictly go with what the data shows on any given day and hold back any of my biases or feelings about the market.   I don't listen to anyone or postulate what causes the market to move in any given direction.   I leave it up to the commentators in the media to comment on that.

I am strictly a  "Growth Stock"  and  "Trending Stock"  investor and a trader.   They tend to outperform the general market by 2 to 2.5 times using   $SPY  as a gauge for the performance of the general market.   There were plenty of warning signals flashing at me when I scrutinized the stock charts of leading stocks and sector etf's at the end of the week on  5/26.   There were certain clues that alerted me to be defensive in my approach to the market.   I was fortunate that it was the labour day weekend and I had one extra day over the week end to analyse the market data.   I will share with you some of the data points that I utilized to have trailing stops - when the market opened on Tuesday May 30th - on 38 leading stocks.   They were revised upwards as the market continued to move higher.   This was a defensive measure on my part to lock in the profits and raise  CASH  immediately.   

My Interpretation of the Data a Week Prior 


My routine every weekend is to look at the performance of the 3 major indexex  -  $DJI, $SPY  and  $QQQ.   I also look at the performance of all the 9 major sectors to identify the leading sector.   The reason why I do this is because I am always looking at the best stock from the leading sector in a leading index.   As a Retail investor, I only want to be involved with the best of the best Growth Stocks.   I don't ever plan on holding that stock for the long term.   I just  "Buy High and Sell Higher".   I harvest profits of  +10%  to  +20%   and move on to the next stock.   It may be the same stock too sometimes in which case I will use trailing stops to continue to build extra profits in that stock.

What got my attention analysing the market trends over the labour day weekend was:

  1.  $QQQ  was the leading index   + 3.78%  since the last distribution day on   5/17
  2.  $XLK   was the leading sector  +3.26%   since the last distribution day on   5/17
  3.  $XLU   a defensive sector was  +3.29%   since the last distribution day on   5/17
  4.  $XLI    dividend paying large cap stocks (not growth stocks) was  +3.37%   since the last distribution day on  5/17
Wait a second!!!   What just happened?   Did I see a dinosaur (institutions) just walk by that left a huge foot print and a pile of doodos for me?   They account for  80%  of the total volume of trades on any given day.   They just left a clue for me that they are rotating out of the leading stocks (Tech Stocks in particular) and parking their money into dividend paying stocks.

Is it any wonder why I adjusted trailing stops on all those 38 winning leading stocks on Tuesday morning?   These are the stocks that were appearing on My Watch List since April 24th when the   "Market was in a Confirmed uptrend".   I had tweeted and suggested trailing stops on Tuesday and tweeted revised ones the next day as well.   I also tweeted that I was completely out of  $QQQ   position on Tuesday to stop the bleeding.   I am glad I did  that, although so many of my readers suggested that I got out too early because it rebounded slightly the next day.   That may have been the   "Dead Cat Bounce"   but fundamentally there has been a lot of technical damage done to the Tech Stocks.   We all have to be very defensive next week.   Have patience and let the market rally for a couple of days before making a major stock buy.   Any position that you do decide to take, make sure it is a very small position to start out with until the stock proves itself that it is worthy of your investments.

Mentoring Service

This is a perfect time to enroll in our mentoring program.   Market usually takes off in mid October.  You have 3 moths ahead of you now to learn and practice my methodology of:

How I Identify Winning Stocks and Out Perform the market by managing the Stock for Entry, Exit and utilizing appropriate Trailing Stops


Contact us at:

investorspotlight@gmail.com

Don't procrastinate.  Schedule a FREE 30 minutes of   "Discovery Call"   with us.  Learn how best we can coach you and mentor you to help you out perform the market.   Very few spots left and they will disappear soon.

Happy Trading!

Amin

Monday, June 12, 2017

My power went out on me last night at 11 pm and I didnt get to finish my usual blog post that I post by midnight Sunday.  I like to pave the road for my readers before market open on Monday. Here is synopsis of my thoughts:

1.  "Buy n Hold"  is a flawed strategy  Dont listen to the so called GURUS u encounter in media.  They have billions of $ at their disposal since they handle hedge funds (other peoples money)
2.   Retail Traders have limited resources and as such you have to constantly harvest profits and recycle them into another leading stock.
3.   We constantly have  "Sector Rotation"  going on. This is what big institutions do with their portfolio.  Today as I write, we r seeing a breakdown in the Technology Stocks.  There were 38 winning stocks that I have blogged about and brought to highlight on my speaking tour.  I had suggested trailing stops on them last Monday and agin adjustments made further up on Wednesday.  This morning mkt is getting hammered on Technology stocks. 34 out of 38 stocks got stopped out on Friday and today.  That is how u limit your losses and conserve the profits.

Financials peaked in march n they made a round trip within 2 months and gave all that profit back.  They are rising again since last week but one should have harvested profits and gotten back into the leading names last week again.  Piling up 8% to 15% gain in every cycle would allow you to outperform the market consistently.  Buy n Hold just doesn't work on Growth Stocks for me.

Review the performance of $ATHM:
a.  Entry 1/23 exit 2/8  (2.5 weeks) gain 10% profit
b. Entry 5/12 exit 5/17 (3 days)  gain 10% profit
c. Entry 6/5  exit 6/7     (2 days)  gain 10% profit

You limited the  "TIME"   risk in your trade.  The longer you hold a position, greater the risk you  encounter with market risk.  
Just FYI ... I closed out my entire position on $QQQ this morning.  In just 2 days, the index has already dropped -3.68%  This leading index was already up by 21% YTD (year to date)  By 10.20 this morning, the index had already traded 2 times the daily average volume.  This is the kind of loss you want to mitigate as a Retail Trader.  Don't listen to the GURUS who will tell you to buy on the  "DIP"

"Buy n Hold"  is a   Flawed Strategy


Lately I have been talking to a lot of traders who want to sign up for my   "Mentoring Program".  They seek me out because they are failing to make progress with their trading.  I get very similar questions from my followers on Twitter and Linkedin as well on a daily basis.  What I have found is that there is a very important mind set that is missing in their approach to trading.  I blame it on the so called  'GURUS'  that so many traders get caught up with.  You all know who they are because they are on CNBC, FOX, CNN, and Bloomberg tv everyday.  Some of them handle hegde funds and have $Billions on hand to make those trades.  We are Retail traders and investors.  We have limited capital resources to work with.  In order for us to outperform the general market, we have to constantly get into a trade, harvest profits and use that capital to get into another trade.  Buying a stock and holding onto it for the long term - 5, 10 or 20 years - is not a profitable strategy to employ.  Traders understand that when they but a stock, they have their entire capital at risk.  What they fail to grasp it that there is also a time risk.  Longer that you hold onto the stock, greater the risk you are exposed to with your capital. 


Friday June 9th we had a reversal in the market.  Technology Sector (mostly chips, software and internet related stocks)  took a beating.  $QQQ  index that I monitor was down    -2.47%  that day.  This index has been the leading index  +21%  YTD year to date)  This is a phenomenal performance and we as Retail Traders got greedy.  Hardly anyone that I talked to, did anything to have an appropriate   trailing stops   on their positions.  In my post last week, I gave a heads up to my readers to seriously look at having a trailing stop on their position.  Monday morning before market open, I suggested trailing stops on 38 of those winning growth stocks to protect profits in the trade.  They were revised up 2 days later to secure higher profits as the market continued to move up. 

Sunday, June 4, 2017

How  I  Outperform  the  Market  Stress  Free


I am not a  "Day Trader".   Saturday and Sunday is when I do all my stock research and stock chart analyses.   Weekend is when I scrutinize the major indexes and review all my positions.   There is also no market noise to deal with and the last thing I want to do during the week is to sit at the computer and watch my positions.   I can never understand why anyone does that.   Watching your positions tick by tick does not make the stocks move.   It makes you second guess your decisions and you end up stressing yourself.

One of my favourite TV shows that I watch is  "Dancing with the Stars"   Nancy Kerrigan  and  Simeon (both Olympic Gold Winners)  practiced every day and spent  360 hours  to perfect their dance routine to reach the semi finals.   They got eliminated in the final rounds in spite of practicing every day to perfect their routine.   Trading is no different.   Before the market opens on Monday, I have to have everything in place  -  My Trade Plan,  My Stock Watch List  and any adjustments that I may have to make to my positions with  trailing stops.    


+53%  to  + 500%  Annualized  Returns

Every week, I pick only 1 stock or may be 2 at the most to place a trade on.   I am not a hedge fund manager with  $Billion  at my disposal.   Being a Retail trader and an Investor, there is limited amount of capital to work with.   I have to constantly harvest the profits to free up the capital so I can rotate my cash into another leading stock.   It is important to select the best of the best stocks out of the  10,000  stocks that we have in the US markets.   Since I only trade   Growth Stocks,   I narrow down my search to the leading stocks,  in the leading  IBD (Investors Business Daily)  Groups  and only in the  leading sectors.   Following are the results  (expressed as annualized returns)  of the 7 most recent stock positions  (3  are closed out and  4  are still open with trailing stops in place)  in the last 14 weeks:
  1. $IDXX ... 2/23 - 4/27 (5 weeks)  +154%
  2. $ANET ... 3/10 - Still in trade      +98%
  3. $HDB  ... 3/29 - Still in trade       +91%
  4. $PAYC ... 4/12 - Still in trade      +126%
  5. $VEEV ... 4/21 - 5/31 (5 weeks) +180%
  6. $ATHM ... 5/12 - 5/17 (1 week)   +500%
  7. $QQQ  ... 4/26 - Still in trade      +53%

The 3 major indexes  (reflects the performance of the US market)  that I follow, have exhibited the following performance year to date for 2017

  1. $DJI ...  +7.31%
  2. $SPY ...  +9.23%
  3. $QQQ ... +21%  

The performance of the  7 stocks that I have highlighted, far exceeds the performance of the general market as indicated by the performance of the 3 major indexes. 

This is the week when every trader should be looking to harvest the profits  as identified in the trade plans. You also want a trailing stop on your stock to lock in some of the gains that you have made.   Some of the stocks are extended  +10%  to  +20%   beyond the ideal buy points.   We had a   distribution day   on  3/21  and again on  5/17   when some stocks sliced thru the  50 day sma (simple moving average)   It can happen in the bullish market like we have one right now.   You want to protect your profits in the trade.   I shall tweet some of the trailing stops for the some of the stocks that I have brought to my readers attention on  Linkedin,   Twitter   and to my  IBD  Meet up  members in the Tampa Bay area.   Have a look and share it with your trading colleagues.   By all means, please continue to interact with me with your comments and retweets of my content.   I always like hearing from my readers and followers.

Mentoring Service

Don't procrastinate and learn from me:

How to Identify Winning Growth Stocks and Manage the Stock to Outperform the Market


contact us at:

Investorspotlight.com

Schedule a FREE 30 minutes of  "Discovery call"  with us.   Learn how best we can coach and mentor you to help you achieve outsize gains in the market.


Happy Trading!

Amin

 

Monday, May 29, 2017

+180%   Annualized Return  ...  $VEEV

How is that possible when the general market - using  $SPY  as a barometer - does only  +8%  to  +10%  every year?   

Simply answer:
  1. Invest in Growth Stocks
  2. Buy  'High n Sell Higher'
  3. Learn the IBD (Investors Business Daily) system of  CANSLIM investing
  4. Have a Trade Plan 
  5. Mitigate risk and control your losses
How come you don't hear this on  CNBC  or  FOX  or  Bloomberg  tv channels?   They are not doing you any favours.   Take it upon yourself to learn the system and take control of your own finances and your retirement account.   Share this post with your financial advisors and your professors in colleges.   They will be exposed to an idea that they may have never encountered. 

  I had shared my trade on  $IDXX  in my post on May 14 (2 weeks ago)  where the stock had  +14.79%   return in 9 weeks  (+85% annualized)   In my post this week I will share the steps I took to identify the stock  - $VEEV -  and timing its entry.   Once the position was taken, I shall show you the steps I took to monitor and manage the trade and make adjustments in the trade plan along the way as the stock headed towards its earnings confessional booth on Thursday May 25th.  

$VEEV  Trade  of  the  Week 

  1. 3/15 ... stock broke out from  $48.05  buy point in confirmed high volume and quickly ran up over 5% within 5 sessions.   Stock went through a 3 weeks tight consolidation pattern.   We had a major distribution day on  3/21 but the stock held up and stayed above the 8 day ema(exponential moving average)
  2. 4/20 ... stock broke out from a 3 weeks tight pattern in confirmed high volume.
  3. 4/21 ... Took a small position - since it was beyond the  +5%  buy zone and the risk was elevated.   Trade plan was for entry at  $52  with a  +10%  profit  target at  $57.20  and a loss target of  - 4%  at  $49.92.
  4. 5/5 ... RS line was reaching new high ground and pointing up.   RS ratings had increased to  95  and the stock had moved up from IBD group   49  to  22 within 2 weeks in the trade.
  5. 5/11 ... Had a trailing stop at  $54  to protect profits in the trade.
  6. 5/15 ... profit target was met but chose to use trailing stops and adjust the trade plan for more than  +10%  gain instead.
  7. 5/16 ... price moved up to  $59.09  in volume 2 times the average daily volume.   Trailing stop was moved up to  $55  to protect the profits in the trade.
  8. 5/17 ... We had a major distribution day where the  $SPY  and  $DJI  both plummeted to the  50  day moving average but the stock showed institutional support and kept up at the 8 day ema.   Major networks were predicting doom n gloom.   Stock closed at 15 cents above my  + 10%  profit target.  
  9. 5/23 ... Raised the trailing stop to  $57  while there was more trading volume coming in and the price continued to surge past the 8 day ema.   Earnings report was due within 2 days.
  10. 5/25 ... Earnings report was due after the close.   There was increasing volume for the past several days and the stock was surging.   Chose to harvest profits and closed out the position at  $61  for  +17.3%  profit  in 5 weeks (+180% annualized) 
  11. 5/25 ... I had taken most of the risk off by closing out at  $61.   Chose to keep just  10%  of the position still in play for the earnings  report.  Stock surged  +7%  on Friday 5/26
  12. 5/25 ... Tuesday morning May 30th, I shall close out the position at the open at market price.  The stock has moved up from group 22 to 13 currently in the last 3 weeks.

Mentoring Service

Don't procrastinate and learn from me:

 How I Identify Winning Growth Stocks and How I manage the Stock to Outperform The Market

Contact us at:

investorspotlight@gmail.com

Schedule a FREE 30 minutes of  "Discovery Call"   with us.   Learn how best we can coach you and mentor you to help you achieve outsize gains in the market.


Happy Trading!

Amin





Sunday, May 21, 2017

Why  I  Trade  Growth  Stocks

I started trading stocks and options on stocks in 1992.   I wasn't very successful at first but than I read the book:

"How  to  Make  Money  in  Stocks"


By William J. O'Neil  (Founder of Investor's Business Daily)

Once I started reading the book, I just couldn't put it down.   What struck me the most was a statement on the very first page of the book where it said:

"The American Association of Individual Investors conducted an independent real time study of 50 top investment strategies every month from January 1, 1998 to December 31, 2009 and found O'Neil's CAN SLIM to be the top performing investment strategy.

In AAII's study, CAN SLIM produced a  2,763%  result, an average of  35.3%  per year versus  3.3%  a year a year for the  S&P 500  during the same time period." 

This got my attention.   I quickly began to learn this system of trading  IBD (Investors Business Daily) types of Growth Stocks.   I learnt from all the IBD classes that I attended and the videos that I consistently watched on their website that an investor could out perform the general market by 2 to 2 and 1/2 times as measured by $SPY's performance as an indicator of the general market performance.  I just had to learn to buy the stock right and sell it right and not allow losses to be more than  -4%  to  -5%  from the purchase price if the market conditions worsened. 


Results  of  My  Test

On Monday April 24th, the 3 major indexex -  $DJI,  $SPY  and $QQQ  all gaped up and by the end of the day, IBD  changed the status of the condition of the market as  "Confirmed Uptrend"    That is the signal for retail investors to start deploying their profits by initiating a stock position.  

 I had identified 23 stocks on  My Watch List  that I posted on my blog on Sunday night April 23rd.   Here are the results of the performance of these stocks by establishing the base price of the stock as it was on the end of the market session on Monday April 24th.   I don't hold the stock through earnings and as such I looked at the price of stock on the end of the session prior to the day earnings were reported.   I just wanted to test out the theory that IBD style stocks do perform 2 to 2 and 1/2 times better than $SPY.

From the day the market was in  "Confirmed Uptrend"   until Friday May 19th,  major indexes performance was:

$DJX ... +0.19%
$SPY ... +0.48%
$QQQ ...+2.74% 

Performance of My 23 Stocks was  -1.76%  average for 7 losers
  1. $CIM ...   -0.20%
  2. $CRUS ... -0.60%
  3. $SWKS ... -0.90%
  4. $GMS ...  -1.40%
  5. $DIS ...    -1.83%
  6. $IBP ...    -2.52%
  7. $GTN ...   -4.84%
+ 4.44% average for 16 winners
  1. $RAI ...  +0.11%
  2. $CGNX .. +0.92%
  3. $CHTR .. +1.11%
  4. $MKSI ... +1.71%
  5. $ADBE ... +2.66%
  6. $SNPS ... +2.83%
  7. $IDXX ...  +3.62%
  8. $AEIS ...  +3.75%
  9. $ATVI ...  +3.85%
  10. $LRCX ... +5.12%
  11. $ULTA ... +5.70%
  12. $AMAT ... +5.74%
  13. $HDB ...  +5.95%
  14. $PCLN ... +6.28%
  15. $APO ...   +8.41%
  16. $MOMO ..+13.34%
Average performance for all 23 stocks - counting 7 losers and 17 winners - was  +2.68%.   in 3 weeks.    That amounts to  +46.45%   annualized.   $SPY  performance in the same period amounts to  +8.32%   annualized.


Mentoring Service

Enroll in our mentoring program to learn how to out perform the general market and learn:

How I Identify Winning Stocks and How I manage the Stock for Entry, Exit and using appropriate Trailing Stops

Contact us at:

investorspotlight@gmail.com

Schedule a FREE 30 minutes of  "Discovery Call"  with us.   Learn how best we can coach you and mentor you to help you out perform the market.

Happy Trading!

Amin

  

Saturday, May 20, 2017

Retailers   Reporting   Earnings  This  Week

We are at the end of the earnings cycle with over   90%   of the   S&P   companies already exiting the earnings confessional booth.   We have retailers like    $AZO, $AAP, $TIF, $WSM, $DLTR, $ANF, $BBY, $BURL, $COST, $DECK, $SIG, $ULTA    and   $BIG   slotted to report earnings this week.   Most of these companies are US centric.   They have very little to no exposure to foreign markets so there isn't any currency risk.   These companies are US consumer oriented.   70%   of the US economy is driven by the consumer spending.   Retailers such as   $SHLD, $JCP, $M, $KSS, $JPN   are on the decline.   They have lost their market share to online company such as   $AMZN.    Just be prepared for a nasty surprise and be defensive this week.

Thursday   May 25th i  s the busiest day for some of the retailers that report earnings that day.   Chances are the institutions may not react favourably to the earnings.   This weekend would be a good time to look over your stock positions in    Consumer Discretionary Sector    and have trailing stops to protect profits in a stock, if you already have   +5%   or more profits in the stock. Retailers may drag down the entire sector so it is best to be prepared for it. We had a nasty    distribution day   in    $SPY, $DJI    on Wednesday   May 17th   where the indexes dropped below the   50 day simple moving average   in volume   twice   the daily average volume.    $QQQ    however did not drop down that far but just managed to stay above the    34 day exponential moving average.    Most of stocks that were highlighted on my Stock Watch List the   past 4 weeks   in my blog   (investorspotlight.blogspot.com)   with stood the carnage in the market and were trading above the   21 day exponential moving average.   That is sign of strength in a stock when the general market trades below the   50 day simple moving average.   I had posted on my tweeter   @spotlightamin   to let my followers and readers know to start being defensive and raise   CASH   by selling off the laggards and holding on to the winners with appropriate trailing stops.
I shall post my detailed    Market Outlook    and results of some of the stocks on   My Watch List.   Be on the look out for it over the weekend.
Happy Trading.
Amin

Sunday, May 14, 2017

Double Your Portfolio - One Stock at a Time


Every Sunday night, I write a post for my followers and I share   "My Market Outlook"   for the week.   I also share   "My Stock Watch List"   every week.   It is never meant to be a recommendation.   Some of my followers have been asking me as to what should be the minimum number of stocks that they ought to have in their portfolio.   My simplest answer is   "As many as you can remember"    Most financial advisors tell their clients that they should diversify their portfolio to lower risk.   My approach is contrary to conventional thinking.   As a Retail trader and an investor, you should instead concentrate your portfolio with just a few stocks.   Your risk is smaller because your exposure in the market is in just a few stocks.   It also means that you should know everything about that stock and learn all the nuances and the behaviour of that stock.   Before you take the position in the stock, make sure you have a trade plan in place for your profit, loss and time in the trade target.

In my post this week, I will share with you just one typical trade in a stock and how I managed the trade to have an  +85%  annualized return.   Choosing the right growth stock is the easy part.   Constructing an appropriate Trade Plan and managing the risk in the trade is what will enable you to double your portfolio with just a few stocks in your portfolio.   You are focusing your attention on just a few stocks instead of getting overwhelmed with 10 or more stocks that are not the leading stocks in the leading sector.   

$IDXX  +14.79%  Return in 9 Weeks (+85% annualized)


Since January of this year,  $QQQ has been the leading index with a return of  +17%   year to date  (+40.75% annualized)   You would double your portfolio in two years by passively investing in this leading index.   I have been highlighting in my post that the leading sector is  $XLK(Technology)  and I had mentioned this stock a couple of times as being one of the stocks on My Watch List.   Here are some of the steps I took to manage the trade by adjusting my trade plan along the way to gain  +50%  more returns than the  +10%   profit that I had originally planned for when I took the trade.     

  1. Stock popped +16%  during earnings on Feb 2nd in volume that was 4 times the normal average daily volume.   This confirmed that institutions were supporting this stock.  The stock had acted in a very similar manner during earning on Aug 8th of 2016.   It took 3 weeks of tight trade with the stock hovering around 140 to 142 to digest the gains from earnings.
  2. Trade Plan: Entry at  $140  for  10%  profit Exit at  $156.20  and loss exit for  -4%  at  $136.32
  3. Stock was trading along the  8 day ema(exponential moving average) and its RS rating was in the high 90's and RS line was pointing up in a very bullish manner.   We had a distribution day on March 21st but the stock did not get any jitters and continued to trend along the  8 day ema while the  $QQQ  dropped down below the 21 day ema to touch the 34 day ema.   
  4. March 31st had a trailing stop at  $150  to protect the profits in the trade while the stock continued to track along the 8 day ema.
  5. April 20 had a trailing stop at  $152  to protect the profits in the trade while the stock continued to track higher along the 8 day ema.
  6. April 27 closed out the trade at  $163  to avoid risking profits in the trade with earnings report due the next day.
  7. Original Trade Plan was for  +10%  profit target and I managed to squeeze out  +4.79%  more by staying in the trade 3 more weeks since the stock was behaving in a bullish manner along with the market being in a confirmed uptrend.
  8. On Monday morning May 15th will reinitiate a trade since the stock is continuing to trend along the 8 day ema and RS ratings is still in the 90's and RS line is still pointing up.
Trade Plan: Entry $163 to $163.50 for  +10%  profit target and a loss of  -4%   I fully expect the stock to retrace and that is why I have planned for a loss exit.   $QQQ  is still the leading index and the leading sector is still the  $XLK(Technology)  that has done  +6.09%  in the last 4 weeks.


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Amin

Sunday, May 7, 2017


DOW  At  60,000  By  2025

How is that possible?   Most of you think this is too far fetched.   Actually it is not.   In 1995, the Dow was at 4,000 and within 5 years it reached 12,000.   Your portfolio would have tripled in those 5 years.   In March of 2009 the Dow was at 7,608 and it has almost tripled in the last 8 years to 21,006 as of Friday May 5th.   We had a bullish period in the market from 1995 to 2000 where the Dow tripled from 4,000 to 12,000 within 5 years.   History does repeat and this sort of performance in the market is not uncommon.   If you are a Growth Stock investor and you master the    IBD (Investors Business Daily)    rules of trading and investing, you can double or triple your portfolio during one of these bullish cycle in the market.   You just have to learn to   "TIME"   the market.    You have to be a  100%  in the market when the   "Market is in a Confirmed Uptrend"    as it was on Monday April 24th end of session that day.   There are also times when you have to be a   100%   in "CASH"    when the   "Market is in Correction"   as it was on February 8th of 2016.



My  Market  Outlook

Currently my outlook is still bullish.  In the last 3 weeks, the major indexes that I monitor have shown the following performance:

$DJI  ...   +5.66%
$SPY   ... +6.42%
$QQQ  ... +15.06% 

Leading sectors are the  $XLK(Technology) at  +12.67%   and   $XLY(Consumer Discretionary) at   +10.12%   in the last 3 weeks.   That is where we as retail traders and investors should focus our attention.   Market has been consolidating for the past 2 weeks but   $QQQ   still has the momentum.   I have the following stocks that have an upward pointing  RS line  and  RS ratings   above  90.   This shows that these stocks are poised to move higher once the market gets a catalyst.   French elections are over and more than 75%  of the companies in  S&P 500  have reported their earnings.    There is some certainly in the market now.


  1. $PRI
  2. $WDC
  3. $RCL
  4. $TER
  5. $DY
  6. $WB
  7. $AEIS
  8. $NFLX
  9. $AMZN
  10. $TEAM
  11. $DXJ (Japan etf)
  12. $EWJ(Japan etf)

Performance of Stocks on My Watch List Last Week

  1. $TMUS   -1.16%
  2. $BSX     +0.49%
  3. $WYN    +0.80%
  4. $AMZN  +0.99%
  5. $CCL     +2.02%
  6. $MCD    +3.28%
All of these stocks are still trending along the 8 day   ema(exponential moving average)  They are from the 2 leading sectors that I highlighted in this post.

Mentoring Service

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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.