Investor Spotlight

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:

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.
$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.
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.