$DJI  Leads  $SPY

January of this year, the stock market came out of the gate in full force.  Few believed that we were going through a seismic shift in the US stock market.  $DJI  is composed of very old and mature companies.  They just don't grow as fast as the Growth Stocks do that are in the  $NASDAQ.   $DJI  index however, outperformed the  $SPY (used as a proxy to measure the US stock market performance) in the 23 months since mid  February of 2016.  As a matter of fact, it was just shy of the leading index  $QQQ.  Volume in trading also has been twice as much daily in the  $DJI  as of   Dec of 2016.  Institutions are obviously taking huge positions in the  $DJI  components.  It will be worthwhile monitoring the the Industrial Sector because that is where the new groups of leading stocks might emerge in  2018. 

Stellar  January 

Every trader that I have talked to this month, seem to be in a good mood because the market is rewarding even the worst ones amongst us.  Best traders always measure their performance against the major indexes.  Here are the results of the 3 major indexes and the 9 major sectors.

Indexes:

• $SPY  ... +7.39%
• $DJI   ...  +7.68%
• $QQQ ... +9.74%
• 
  

9 Major Sectors:

• $XLV   ... +10.72% (Health Care)
• $XLY   ... +10.45% (Consumer Discretionary)
• $XLK   ... + 8.19%  (Technology Sector)
• $XLF   ... + 8.09%  (Financial Sector)
• $XLE   ... + 7.27%  (Energy Sector)
• $XLI    ... + 6.59%  (Industrial Sector)
• $XLB   ... + 5.88%  (Materials Sector)
• $XLP   ... + 3.20%  (Consumer Staples)
• $XLU   ... - 3.10%  (Utilities Sector)

Portfolio  Management

Diversifying your portfolio is a   'Flawed Strategy'.   As a Growth Stock investor, one must consistently outperform the leading index.  Any stock that is not meeting that performance standard is considered a  'laggard'.   You only want the  'Leading Stocks'  in your portfolio.  Instead of diversifying your portfolio, what one must do is get rid of the laggards from the portfolio and concentrate the position in the leading stocks instead.  

Here are results of the Stocks currently held in My portfolio. I have indicated in parenthesis, the price and the date the position was initiated.  Leading stocks are mentioned first and the laggards are the ones that have performed less than the leading index  $QQQ  performance of  + 9.74%  in 4 weeks of January (18 trading days only).

Leading Stocks:

1. $PYPL ... +39.40% ($61.30 August 31st)
2. $PYPL ... +22.07% ($70.00 Oct 24th Added as a Second position)
3. $MA   ...   +27.8%  (133.30 Sept 1st)
4. $MA   ...   +12.8%  ($151.00 Dec 21st Added as a Second position)
5. $YY   ...    +20.6%  ($116.00 Jan 2nd)
6. $YY   ...    +15.2%  ($121.46 Jan 3rd Added as a Second position)
7. $ADBE ... +13.70% ($177.70 Jan 3rd)
8. $SIVB   ... +13.60% ($227.04 Dec 1st)
9. $MSFT   ...+13.67% ($86.20 Dec 20th)
10. $RHT   ...  +11.30% ($121.50 Nov 7th)

Laggards:

1. $GRUB   ... +9.30% ($70.00 Dec 13th)
2. $CBOE   ... +7.90% ($127.00 Jan 8th)
3. $IPGP    ... +7.18%  ($242.34 Jan 8th)
4. $ALGN   ... +6.60% ($266.41 Jan 19th)
5. $TEAM   ... +5.80% ($50.88 Jan 4th)

Mentoring  Program

Did your portfolio increase by  +40%  to  +50%  in 2017?

If it did not than you need to start asking questions about what it is that you are doing wrong!  2017  was an unprecedented bullish year and we have already started  2018  +7.39% (+96% annualized)  with  $SPY  in just 18 trading days.  You need to make a commitment this year to learn:

• How to find the  Winning Growth Stocks?
• How to  Buy the Stocks Right?
• How to  Plan your Trade for Profit, Loss and Time in the trade?
• How to  Sell your Stock Right?
• How to  TIME the market?

I shall be opening up a very limited number of slots for mentoring in February.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com 

Happy Trading!

Amin 

 

DOW  Drops  1,000  Points !

Do you have a plan in place if the major indexes correct in the next 2 weeks?  This may seem to be a hypothetical scenario but in actuality it is not.  In  2017  the market had corrected less than -3%  and a mild correction of  -3%  to  -5%  is quite normal in a bullish market.  When I analyse the charts of the   $DJI,   it appears that the index trades at the upper bollinger bands from 9 to 14  days before it begins to consolidate.  $DJI  is currently hovering for  10 days  at the upper bollinger bands and it could snap back to the mean.  Currently We have only 2  distribution days  between the  $SPY  and  the  $NADAQ.  There will have to be an elevated count of distribution days before panic begins to set in the market.

On Wednesday Jan 3rd, I had alerted my readers and followers to seek portfolio protection with the use of option trades on  $VIX.  Some of you followed up on it and now have profited handsomely.  $VIX closed at  $9.15  that day and now after 3 weeks, it is up a whopping  +23%.  WOW!  WOW!  WOW!   This is highly unusual because  $DJI  is also  +5.47%  in the same period.  How often do you get an opportunity to profit in the index as well as the  $VIX ?

Performance  of  Most  Profitable  Stocks  of  2017 

Mr. Jesse Livermoore - the greatest stock trader of our times - did the post mortem every year of all the trades that he had done that year.  He would spend the entire weekend inside the bank vault, going through all his notes on every trade that he had done.  Why did he do that?  One of the main reasons was, he wanted to find out what trades he made mistakes and lost money and which trades he made that made profits for him.  All he wanted to do was to continue doing what worked for him and stop doing things that caused him losses.  He came up with what we now call  "Model Stocks".  These are the stocks that made money and it is a good idea to study them and their patterns.  Next time you see a similar pattern develop in a stock, you may have found a candidate that will become a super stock.

At the beginning of this year, I highlighted 26 stocks that I considered to be the  Model Stocks  of 2017.  Below I have highlighted the performance of the 3 indexex as well as the 26 Model Stocks.  Since I am a Growth Stock investor, I want my stocks to perform 2 times better than the performance of the  $SPY.

Indexex:

• $SPY   ... +5.08%
• $DJI   ...   +5.47%
• $QQQ  ... +6.79%  

28 Model Stocks:

1. $KEM   +32.60%
2. $IPGP   +22.85%
3. $YY       +22.24%
4. $ALGN  +21.27%
5. $NVDA  +18.92%
6. $OLED   +17.96%
7. $ANET   +15.04%
8. $NFLX   +14.85%
9. $PYPL   +13.88%
10. $CGNX   +13.15%
11. $LRCX   +12.75%
12. $AMAT   +12.28%
13. $CTRL   +10.25%
14. $MA       +10.22%  
15. $VMW    +8.55%
16. $CBOE   +7.46%
17. $BABA    +6.74%
18. $VEEV    +5.88%
19. $HDB      +5.66%
20. $NVR      +5.47% 
21. $RHT      +4.86%
22. $AVGO    +3.69%
23. $THO      +3.13%  
24. $PRAH    +2.67%
25. $GRUB    -2.47%
26. $NTES     -5.66%

Average performance of the  26 Model Stocks - including the 2 losing stocks - was a whopping  +10.93%  since the beginning of the year.  That is more than 2 times the performance of the market as measured by the  $SPY  at +5.08%.  I have traded a large percentage of these stocks in 2017  and I have made detailed notations on my stock charts and trade diary.  This is something that every trader and investor ought to do.  Its time consuming but its the discipline that will make you a better and a profitable trader.  This is one of the things that Mr Jesse Livermore did and its a good habit to follow.

Mentoring  Program

Did your portfolio increase by  +40%  to  +50%  in 2017?

If it did not than you need to start asking questions about what it is that you are doing wrong!  2017  was an unprecedented bullish year and we have already started  2018  +5.08%  with  $SPY  in just 13 trading days.  You need to make a commitment this year to learn:

• How to find the winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stock Right?
• How to TIME the market?

I shall be opening up a very limited number of slots for mentoring in February.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com 

Happy Trading!

Amin 

Learn  To  Invest  In  The  Stock  Market

Last night I was talking to my cousin in Canada and she told me that she made only  +4.5%  in  2017  with the money she has with her financial institution that handles her retirement account.  My answer to her was that most of my students made over  +40%  utilizing my methodology on investing in Growth Stocks.  She couldn't quite understand how that was possible.  I suggested to her that she had better subscribe to my blog and learn from me.  I also suggested to her that she better acquire a copy of the book:

"How to Make Money in Stocks"

By Mr. William J. O'Neil (Founder of Investors Business Daily)

This is a must read for anyone that wants to learn  "How to Out Perform the Markets"

I have read this book several times and it is a book that I take with me when I go on vacations.  It is also a good reference book to study the stock charts and review the Buy and Sell rules of investing in Growth Stocks. 

Market  Performance

2018 started out with a bang and the market took off as soon as it opened for trading on January 2nd.  We have gone thru just 9 trading days this year and here are the results of the 3 indexes as well as the 9 major sectors of the US market.  I have included the results of the transportation sector and the oil sector as well. 

• $SPY   ... +4.14%  (General Market Index of 500 Large US Companies)
• $DJI   ...  +4.39%  (Dow 30 Index of 30 Mature Companies)
• $QQQ ... +5.60%  (Technology Sector)
• $DJT   ... +7.17%  (Transportation Sector)
• $USO   ...+7.16%  (Proxy for Oil Index)
• $XLE   ... +7.14%  (Energy Sector)
• $XLY   ... +6.42%  (Consumer Discretionary Sector)
• $XLI   ...  +5.95%  (Industrial Sector)
• $XLV   ... +5.00%  (Health Care Sector)
• $XLF   ...  +4.73% (Financial Sector)
• $XLB   ... +4.72%  (Materials Sector)
• $XLK   ...  +4.47% (Technology Sector)
• $XLP   ...  -0.42%  (Consumer Staples Sector)
• $XLU   ...  -4.59%  (Utilities Sector)

Market  History

February  16th  2016,  We had a signal that we were entering the kind of bull market that we had witnessed from  1995  to  2000.  Following is a paragraph from my introduction to the blog I published on  May 7th 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.



We have entered an unprecedented bullish market as of February 16th of 2016.  In the last 23 months, the 3 major indexex have performed as follows:

• $SPY   ...  +46.44%
• $DJI   ...    +59.31%
• $QQQ   ... +64.11%

Important lessons and observations that one should make from this data is:

1. A disciplined investor/trader of growth Stocks should have been able to outperform the leading index  $QQQ.  A 72% return  would have doubled your portfolio in the last 23 months. 
2.  $DJI  has been performing like the  $QQQ  (Leading Technology Sector Index).  That is a seismic shift in the US market and we all better be attuned to that. 
3.  Could the Dow reach  60,000  by  2025?  I am not forcasting by any means but you all need to learn to mine the data by analysing the indexes.  

My blog post on  January 1st,  I had highlighted the segments of our US market that were likely to outperform the market.  I have listed some stocks in parenthesis in each of those segments that did just that.

• Oil/gas production and transportation ($USO, $CVX, $SLB, $ODFL, $NSC, $FDX, $UPS,).
• Steel, gold, silver, coal, copper, chemicals and mining companies ($X, $MT, $NUE, $STLD, $WLK, $RIO, $BHP)
• Machinery to process the materials and rail/airlines/shippers that transport the materials ($NSC, $DAL, $AAL, $UAL, $ODFL, $CAT, $DE, $BA)
• 
  

Mentoring  Program

Did your portfolio increase by  +40%  to  +50%  in 2017?

If it did not than you need to start asking questions about what it is that you are doing wrong!  2017  was an unprecedented bullish year and we have already started  2018  +4.14%  with  $SPY  in just 9 trading days.  You better make a commitment this year to learn:

• How to find the winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stock Right?
• How to TIME the market?

I shall be opening up a very limited number of slots for mentoring this month.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com 

Happy Trading!

Amin 

Portfolio  Protection

Today, Wednesday January 3rd, the US market is continuing to trade higher.  Market had been trading sideways for the last 2 weeks in December of 2017 and trading volume was much lower because of the holidays.  Institutional buyers have come out with full force when the market opened up on Tuesday after the long 3 day weekend holidays.  Lots of stocks are showing signs of breaking out from their resistance lines this morning.  Some of those stocks are getting extended but may offer a short term opportunity to add to your positions if you have already made some profits in the stock.

Here are those stocks:

$OLED, $HTHT, $YY, $FIVE, $THO, $NVDA,$NVR, $KBH, $LEN, $DHI, $VALE, $URI. $NFLX, $TREE, $WLK, $HFC,$TEAM, 

$VIX   is currently trading around   $9.20.   It has traded as low as  $8.84  in 2017.  This would be an opportune time to consider doing an option trade to protect your portfolio.  2018 will have some volatility and will not be as smooth sailing as we did in 2017.  Market has not corrected more than  -3%  in 2017.  February traditionally has been a poor performing month in the US markets.   $SPY, $QQQ  and $DJI  has been trading at the  upper   bollinger bands   for the entire month of December.  $DJI  has traded as long as 8 weeks at the upper  bollinger bands  in 2017 before snapping back with a correction.   $VIX   has spiked as high as   $14.51  on Aug 11th (we had distribution days on Thursday Aug 10th and again a week later on Thursday Aug 17th on the  $SPY  as well as the  $NASDAQ).  That is a spike of  +57%  to  +88%   WOW!  WOW!  WOW!  

Is this an opportunity or what?

Happy Trading!

Amin

Happy  New  Year

2017 was one of the best years other than the year 2009 when the market came out full force with a confirmed bullish uptrend.  There were so many doubters about the 4 day rally from Feb 11th thru the 17th (4 day rally) of 2016.  No one believed that the market would maintain its bullish stance after 7 years.  There were however plenty of signals in the market in mid February of 2016 when  IBD(Investors Business Daily)  signaled a  'Follow Thru Day'.   That was the time to start initiating stock positions in the Leading Stocks in the Leading Industry.  It will be 2 years on Feb 2018 for this continuation of the bullish trend that started in March of 2009.  We have only had less than  -3%  correction in the market last year.  Volatility ($VIX)  has been at record lows and hovering around 9. 

High  Lights  of  Market  Performance 

I took the time over the weekend to analyze the markets and study some of the profitable trades that I did and the stocks that I shared in my weekly blog in 2017.  It helps me to get the sentiments of the market and where I see the opportunities heading into 2018.  The performance of the 3 major indexex and the 9 main sectors is highlighted below:

• $SPY   ... +19.4% (General Market Index of 500 Large US Companies)
• $DJI    ...  +25.1% (Dow 30 Index of 30 Mature Companies)
• $QQQ  ... +31.5% (Technology Market Index of 100 Companies) 
• $XLK   ... +32.2% (Technology Sector)
• $XLB   ... +21.8% (Materials Sector)
• $XLI    ...  +21.6% (Industrial Sector)
• $XLY   ...  +21.4% (Consumer Discretionary Sector)
• $XLV   ...  +19.9% (Health Care Sector)
• $XLF   ...  +19.5% (Financial Sector)
• $XLP   ...  +10.0% (Consumer Staples Sector)
• $XLU   ...  +8.50% (Utilities Sector)
• $XLE   ...  - 4.20% (Energy Sector)
• $DJT   ...  +17.3% (Transport Sector)

The rally has been pretty broad based with the exception of the Energy Sector ($XLE).  Leading index has been the Technology Sector ($XLK)  and most of the stocks I had highlighted in my blog posts in 2017 were in that sector as well.

Here are some of the stocks that were the most profitable ones in 2017.  You can review some of my posts in 2017 where I shared my  Stock Watch List  and the trades on these stocks.  All of my 160 blog posts are archived for your FREE access.

1. $NVR
2. $NVDA
3. $ALGN
4. $ANET
5. $CTRL
6. $KEM
7. $YY
8. $OLED
9. $CGNX
10. $AMAT
11. $THO
12. $NFLX
13. $AVGO
14. $NTES
15. $LRCX
16. $VEEV
17. $PYPL
18. $MA
19. $PRAH
20. $CBOE
21. $RHT
22. $BABA
23. $VMW
24. $GRUB
25. $HDB
26. $IPGP

Market  Outlook 

My sentiment of the market is quite bullish for 2018.  We are witnessing an unprecedented event throughout the world markets.  Asian markets are up over  +30%  (South Korea, India, China, Hong Kong) as well as South Africa.  Large economies of Europe (Germany and France) as well as Japan are all up over  +23%  for 2017.  These are the economies that will fuel the emerging economies of the world in 2018.  I shall be monitoring the following segments of the markets:

• Oil and gas production, transportation and exploration.
• Commodities like steel, gold, silver, coal, copper, chemicals and mining companies.
• Machinery to process the materials, and rail/airlines/shippers that transport the materials.

Growing economies of the world will need commodities and machinery to mine the minerals and process the chemicals.  The same is true of the major big markets of US, Europe and Japan.  As always,  I shall let the stock charts be my final guide to reflect my sentiments.  I shall continue to share with my readers, subscribers and followers, My Market Outlook in my blog posts every week.  I appreciate all the comments and suggestions you have made over the last 52 weeks.  Please continue to give me your feedback and suggestions in 2018 as well.  

Mentoring  Service

Did your portfolio increase by  +40%  to  +50%  in 2016?

If it did not than you need to start asking questions about what it is that you are doing wrong!  2016  was an unprecedented bullish year and you better learn:

• How to find winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stock Right?
• How to TIME the market?

I shall be opening up a very limited number of slots for mentoring this month.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com  

Have a Very Happy, Healthy and a Prosperous 2018

Amin