+16.35%  Profit within 6 Trading days utilizing 8 week hold rule

Mr. William J. O'Neil (Founder of Investors Business Daily) has a rule which states:

"If your stock gains +20% or more within 1 to 3 weeks of a proper breakout, hold it for atleast 8 weeks".

Stocks with such a power often become the biggest winners.  A true leading stock that make such powerful gains is a sign that the institutions have an interest in acquiring more of these shares.  Institutions do not want to spook the market and show their true intentions and as such, there will usually be a period of consolidations before the stock makes another similar move when the institutions come back to acquire more of these shares.

$CTRL  was such a stock that appeared on my weekend stock research that I religiously follow.  On August 3rd, the stock broke out from its proper breakout point of  $26.59  in volume that was 6 times the normal average daily volume of shares changing hands.  The next day it closed at  $33.12 (+ 24.56 gain within 2 days) triggering the 8 week hold rule.  There was a clear foot print left by the institutions and their intentions of acquiring more of these shares.  Stock began consolidating the following week to digest these gains before the institutions would make another attempt to acquire more share.

Trade Plan for $CTRL:

Entry:  $31.20 (got filled at $31.18 on Wed Aug 15th).

Exit:  for initial profit target  $34.32  for a  +10% gain.

Exit : for loss target  $29.64  for a  -5% loss.

The following Tuesday and Wednesday (Aug 21st and Aug 22nd), the institutions came back and began accumulating shares again. There was 2.5 to 5 times the daily average volume of shares traded these 2 days and the position was closed out at market open the following day on Thursday Aug 23rd at  $36.30  for a quick   +16.35%  profit within 6 trading sessions.  Stock has already made a parabolic move of +38.62%  since breaking out of its proper buy point of  $26.59  3 weeks ago.  It is likely to consolidate for several days again or possibly retrace to its 50 day sma(Simple moving average).  Such powerful stocks quite often retrace to its 50 day sma where the institutions often choose to support these stocks.  

Mentoring  Program

"You are unique. You have different talents and abilities. You don't have to always follow in the footsteps of others. And most important, you should always remind yourself that you don't have to do what everyone else is doing and have a responsibilty to develop the talents you have been given"

Roy T. Bennett, The Light in the Heart

Leading Index  $QQQ  is  + 17.15%  year to date.  October through January are the best performing months in the stock market.  You should always measure your portfolio against the leading index  $QQQ.  Is your portfolio lagging the leading index year to date?   If it is than you ought to seek help and let us help you out perform the market with our one on one individualized mentoring.  

Schedule a  FREE  30 minutes of  "Discovery Call"  with us and let us help you to profit in the market.  Let us show you how to identify Growth Stocks that are fundamentally sound and technically set up to help you Out Perform the Market.

Happy Trading!

Amin

Market  Conditions

We are continuing to be the best performing market in the world.  $NASDAQ  is  +13.2%  YTD(year to date)  while the next 3 largets economies in the world - China, Germany and South Korea - are in negative double digits.  Japan is down almost  -5%  YTD.  US economy is firing on all cylinders with the unemployment less that 3.9%.  Inflation is held at bay and the GDP(Gross domestic product) is  +4%  for the last quarter.  80%  of the  $SPY have shown accelerated earnings and sales for the last quarter.  We are at the tail end of the earnings season with  90%  of the  $SPY  already having faced the earnings confessional booth.  

Distribution count between the  $SPY  and the  $NASDAQ  has been getting elevated every week by a count of 2 for the last 3 weeks in a row.  Currently we have 8 distribution days according to IBD(Investors Business Daily).  Its prudent to have trailing stops on any stock position you currently have.  Last week of August tends to get volatile and the indexes have been known to slice right down past the 50 day simple moving average(sma) in the last week of August.  It happened last year but we quickly had a   'Follow Thru'   day right around the labour day holidays.  Lot of traders missed out - including the professional money managers - for the bullish run we had for the next 5 months after that. 

Currently, the 3 major indexes are showing the following performance for the last 13 trading sessions of August.

• $DJI       ... + 1.00%
• $SPY     ... + 1.33%
• $QQQ    ... + 1.93% (Leading Index) 

Traditionally, the month of August shows a meager  + 0.10%  performance on an average, looking over the data for the past 50 years.  This year has been a good month of August so far.  Protect your profits in the trade with an appropriate trailing stop.

Stock  to  Monitor

We have mid term elections coming up in the last week of August.  During the presidential elections in 2016, we had a  'Follow Thru'  day right after the elections results were announced.  Market just took off without looking back until January 26th of 2018 when we had a  - 10%  pull back.  We have to prepare for such a possibilty during our mid term primaries in late August.  Here are just some stocks that I shall be monitoring for the next week.  I have indicated the resistance lines for each of those stocks in parenthesis.

1. $RH       ... (152.48)
2. $HCA     ... (124.51)
3. $CTAS   ... (210.38)
4. $CNC    ... (143.79) 

Mentoring  Program

"You are unique. You have different talents and abilities. You don't have to always follow in the footsteps of others. And most important, you should always remind yourself that you don't have to do what everyone else is doing and have a responsibilty to develop the talents you have been given"

Roy T. Bennett, The Light in the Heart

Our schedule for mentoring new students is full for August/September.  I am however opening up 3 slots on a first come first serve basis for the month of September.  $QQQ - the leading index has performed  + 15.47%  YTD.  Is your portfolio performing better than the leading  $QQQ  index?  If it is not than you are falling behind. 

October through January are the best performing months in the stock market.  Don't procrastinate and get educated about the stock market.  We have individualized program to help you get up and running so you can start profiting in the stock market. 

Schedule a  FREE   30 minutes of  'Discovery Call'   with us and let us help you to profit in the market.  Let us show you how to identify Growth Stocks that are fundamentally sound and technically set up to help you Out Perform the Market.

Happy Trading!

Amin

How  I  Traded  $TWLO  For  +23.50%  in  5  Weeks

I had identified  $TWLO  on June 17th blog post as one of the 15 leading Growth Stock.  Market was correcting at that time and it was not the ideal time to take a position in the stock.  Market went into a  'Confirmed Uptrend'  as of July 6th and that was the signal to initiate a position on the stock.  That is how I  TIME  the market.  One must always buy something on a  'Follow Thru'  day according to Mr. William J O'Neal (Founder of Investors Business Daily).  Here are the details of the how  $TWLO  stock was handled for 5 weeks to attain a profit of  +23.50%. 

1. $TWLO position was taken at the market open on July 6th   'Follow Thru'  day at  $56.87.
2. Trade Plan was for a  +10%  profit target at  $62.56
3. Loss target was for - 4%  loss at  $54.60
4. Profit target was met on July 17th (8 trading days) and 1/2 the position was closed out to mitigate the risk.
5. Earnings was on August 7th.  Held the 1/2 position to benefit from earnings spike.  The last 2 earnings on Feb 14th and May 8th, the stock had gained more than  +20%  within days of earnings release.
6. Trade plan for the rest of the 1/2 position was to close out at +20%  from the high on July 17th when the first 1/2 position was harvested for a  +10% gain.
7. August 9th - 2 days after the earnings release, the entire position was closed for  +20%  gain at $78.00
8. Total cumulative profit in the trade was  +23.50%  in 5 weeks.
9. For comparative purposes, the leading index  $QQQ  did  + 4.96%  in the same time frame.
10. $TWLO  Out Performed the leading index  $QQQ  by  4.7  times.

 $TWLO has attained a performance of  +166%  since the  'Follow Thru'  day on Feb 14th.  Stock has gone up from $29.09  on Feb 14th to  $77.49  on August 10th (6 months).

Growth stocks have the momentum because institutions are the ones that drive the price of the stock higher. 

Mentoring  Program

If you would like to learn:

How to Identify Winning Stocks Consistently and How to Trade them to Outperform the Market

Enroll in our  "Mentoring Program"   There are just 3 spots left for the August/September classes.   Reserve your spot now.  It will be on a first come basis.  Last quarter is traditionally the best quarter in the market.   If your portfolio isn't  + 13.6%  year to date than seek help and don't let the uptrending market get away from you.  Don't procrastinate and take control of your financial future.   Your financial advisor or the hedge funds and mutual funds are not doing you any favours.  They charge you a fee without any guarantee that your investment will out perform the leading index.  You can do much better than the professional money mangers.  Follow me and learn from me 

How to Trade and  Invest wisely.

Schedule a  FREE  30 minutes of  "Discovery Call"   with us.  Contact us at:

investorspotlight@gmail.com 

to schedule your appointment with us to see if you qualify for our program.

Happy Trading!

Amin

Market  Outlook

We are getting to the tail end of the second quarter earnings season.  Over  80%  of the  $SPY  have already reported earnings to date.  70  companies are slatted to report earnings this week (14% of the  $SPY).  This has been a good quarter with  +80%  of the companies beating their sales and earnings outlook.  That has helped push the market higher.  Since July 5th  'Follow Thru'  day, all the 3 major indexes - $SPY, $DJI  and $QQQ  have gained  +4%  to date.  The two major sectors, $XLK (Technology Sector) and $XLY (Consumer Discretionary Sector) account for  +50%  of the $SPY index.  They have been the ones driving the markets higher this year. 

We have 5  'distribution days'   between the  $SPY and the  $NASDAQ.  Market is in a  'Confirmed Uptrend'   as of Thursday August 2nd.  We do have to be a bit cautious this month from taking new positions though.  August is traditionally a volatile and a low performing month.  We have seen some profit taking from the leading growth stocks in the last two weeks.  Some of the leading stocks have already made  +20%  gains and are now building new bases.  This would be a good time to monitor and adjust the trailing stops to lock in profits.  It's also a good time to buy some portfolio protection with options on $VIX.  Its currently hovering around 11.  We have experienced it getting as high as 50 in the month of August. 

Market  Performance

Currently the two leading markets in the world are the US + 6.2% with  $SPY  and  Mexico  + 5.2%  with  $EWW.  The second largest economy China is in a bear territory.  The leading index  $QQQ  is  up a whopping  + 15.6%  year to date.  I have been cautioning my readers and followers not to pay too much attention to the media but instead look at the data.  US market will continue to do very well this year.  US economy is purring along nicely and the data suggests:

• Unemployment of  +4%  is the lowest we have seen in 50 years.  Employers are now advertising for workers with no experience.  
• Interest rates are still low and businesses are making investments in equipment and robotics to increase the productivity of workers.
• Consumer spending accounts for 70% of the US economy and with unemployment at an all time low, they are propping up the market with their spending.
• This quarter over  80%  of the  $SPY  companies have reported increased earnings and sales.  That is what drives the price of stock higher.

Mentoring  Program

If you would like to learn:

How to Identify Winning Stocks Consistently and How to Trade them to Outperform the Market

Enroll in our  "Mentoring Program"   There are just 5 spots left for the August/September classes.   Reserve your spot now.  It will be on a first come basis.  Last quarter is traditionally the best quarter in the market.   If your portfolio isn't  + 15.6%  year to date than seek help and don't let the uptrending market get away from you.  Don't procrastinate and take control of your financial future.   Your financial advisor is not doing you any favours.   They don't know How to Trade or Invest wisely for you.

Schedule a  FREE  30 minutes of  "Discovery Call"   with us.  Contact us at:

investorspotlight@gmail.com 

to schedule your appointment with us to see if you qualify for our program.

Happy Trading!

Amin