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
    

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