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.
- $RH ... (152.48)
- $HCA ... (124.51)
- $CTAS ... (210.38)
- $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!
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