Sunday, July 15, 2018

Timing  the  Market



$TWLO  position was taken on July 6th at $56.87 at the Market open.  IBD (Investors Business Daily) data identified   "Uptrend Resumes"  on July 5th after the indexex rallied from its lows of June 27th.  IBD data suggests that most good Growth Stocks will rise rapidly and twice as fast as the  $SPY  (general market performance) within days.  That is why  Mr. William J O'Neil (Founder of IBD) has a rule that 

"One Must Buy Something on A Follow Thru Day"


The Growth Stock that one must buy at this time, should not only be the one that is fundamentally sound but technically sound as well.  It has to be the leading stock in a leading sector.  $TWLO had appeared as one of the 15 stocks on My Watch List on June 17th blog post.  I had identified  $55.20  as the resistance point.  Market began correcting the last two weeks in June.  It was not the right time to initiate a position on this stock.  July 6th was the ideal time to take the position because the market had resumed its uptrend.  Currently its up  +7. 50%   as compared to the  $SPY   which is up  +3.74%   in the last 6 sessions.  

My Stock  $TWLO  Outperformed the  $SPY  by 2 Times



$TWLO  Story



This was an IPO in Sept 2016.  Most growth stocks that outperform the market are the ones that were recent IPO's in the last 15 years.  For the last several months, the leading group of stocks has been in the enterprize software group.  $BZUN, $CRM, $NOW, ADBE and $ULTI are also in the same group.  They all have risen  +50%  to  +80%  in the last 7 months.  Institutions are obviously favouring this group.  They generally buy all the leading stocks in that group when they make a commitment to buy the leading group.   They leave a tell tale sign of increasing volume and price gap ups during earnings report.  $TWLO did exactly that.   Here are some data to show that:

1.   Earnings on Feb 13th, price went p from  $26.44  to  $42.06 (+60%) within 5 weeks.
2.   Earnings on May 8th, the price went up from  $44.35  to  $61.61 (+39%) within 6 weeks.
3.   Trading volume on earnings day had increased from  4  times to  6  times the daily average trading volume.


$TWLO is scheduled to report the next earnings in 3 weeks.  The next resistance line is  $70.96.  The stock had reached this price point on  Sept 28th 2016, within less than 4 weeks after the IPO.  Within 5 weeks after reaching an all time high of   $70.96,   it lost half its value down to  $31  price level.  The stock changed its character and once again it became the favourite of the institutions during Feb 13th earnings report.





Mentoring  Program


Our schedule for mentoring new students is full for July and August.  I am however opening up 3 slots on a first come first serve basis for the month of August.  Summer time is the time to learn and sharpen your skills.  Traditionally October through January are the best performing months in the market.  Secure your spot now before those slots fill up.  Leading index  $QQQ  is already a whopping  + 3.87%   in the last 6 sessions since July 5th when the market Resumed its Uptrend.  

Is your portfolio performing better that the leading  $QQQ  index?  If its not than you are falling behind.  Don't procrastinate.  $QQQ  is  + 82%  (2 years and 5 months) since the February 11th lows in 2016.

Would you like to learn:

  • How to select the winning stocks like  $ABMD  and  $NFLX  that have gained + 113%  year to date?  
  • How to Time the market with    'Follow Thru'  Days?
  • How to scale into the stocks as the stock continues to profit?
  • How to scale out of the stocks during market correction ?

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











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