Market  Outlook  

I took last week off and headed off to Disney resorts with the family.  We all should take some time away from the markets to reenergize and refocus.  Its amazing how the market looks when you come back with a fresh pair of eyes.  The resorts were at 90% occupancy and the parks were filled with tourists from South America as well as from other states and Florida residents too.  Restaurants were all very busy and most of them were packed with customers.  Gas prices at the pumps had stabilized at $2.70 at most places.  Orlando airport was very busy with flights packed and rental car agencies operating at full capacity.  This leads me conclude that US economy is firing up on all cylinders.  70%  of US economy is dependent upon consumer spending and I witnessed it first hand last week.  Market looks very bullish although we have a total of 10  distribution days  between the  $SPY  and  $NASDAQ.

Our last  "Follow Thru"  was 4 weeks ago on May 10th.  The 3 indexes - $DJI, $SPY and $QQQ - are all trading above the 8 day ema(exponential moving average).  $QQQ is the leading index and it has been trading above the 8 day ema for 5 weeks now.  It hasn't even breached the 21 day ema during any of the  distribution days  we have had in the last 5 weeks.  Here are the performance results of these 3 indexes since the  "Follow Thru"  day on May 10th and the 2 leading sectors that have been trading above the 8 day ema for the last 5 weeks. 

Indexes: 

1. $DJI     ... +2.33%
2. $SPY   ... +2.90%
3. $QQQ  ... +3.57%

Leading Sectors:

1. $XLY   ... +5.02% (Consumer Discretionary)
2. $XLK   ... +2.43% (Technology Sector)

This shouldn't surprise anyone infact.  Last week of March we went through an  -8%  correction in the market and I had identified 25 stocks (March 25th blog post) that withstood the correction.  These were the stocks that were supported by the institutions.  They held onto these stocks.  This provided us with the opportunity to establish a position on them during the subsequent  "Follow Thru"  days we had on April 10th as well as May 10th.  Most of these stocks were from the 2 leading sectors mentioned above.

Mentoring  Program

Our schedule for mentoring new students is filling up fast for the summer months.  There are very limited number of slots available for July and August.  Market usually takes a breather during the summer months and its an ideal time to refine your trading skills.  Secure your spot now before those slots fill up.

Schedule a  FREE  30 minutes of  'Discovery Call'  with us and let us help you profit in the market.  Don't continue to lose money in the market and fail to out perform the market.  Let us show you how to look for Growth Stocks and how best to profit from it.

Happy Trading!

Amin