Investor Spotlight

Happy Thanksgiving

Every year at this time of the year, we all take stock of the blessings that has been bestowed upon us. It is the time of the year we offer our gratitude for being blessed with a wonderful family, prosperity with our jobs and career and profitable returns on our investments in our retirement funds. We are experiencing the best of the times in the US economy. Unemployment is the lowest it has been in the last 50 years. Industrial production is at an all time high compared to the stock market crashes of the year 2000 and 2007. The world has become a better place. More people in the world are prospering, having an access to better healthcare, getting educated and living a good life. More people in the world have gotten out of poverty in the last 20 years than ever before in our human history. I would personally like to offer a very special gratitude this Thanksgiving Holidays to all my followers for sharing your comments on how my posts have helped you get an insight into the market and profit from it.

US Stock Market Compared to the World

Its been brutal in the stock market for the past 6 weeks. We had a "Follow Thru" day on November 7th but it quickly fizzled within 2 days. Institutions haven't stepped in to deploy their harvested profits back in the market. Without the fuel from these institutions, the market will remain depressed. We had a +16% gain in the leading growth stock index $QQQ this year by Oct 1st. 11% of that gain has evaporated within 4 weeks in October. We are however doing a whole lot better than the other leading economies of the world. Here is the what the rest of the world is dealing with compared to US:

South Africa - 24%
South Korea - 19%
Germany - 17%
Mexico - 16%
China - 12%
Canada - 10%
Japan - 9%
US + 2.4% ($SPY General Market Performance)
US + 7.50% ($QQQ Growth Stock Performance)

Stock Watch List

Thanksgiving week usually is a positive week in the market. Market will be closed on Thursday and it will be 1/2 a day on Friday. We are just 10% away with $QQQ from the all time high achieved on October 1st. Market has been depressed for over 6 weeks now. Its like holding the ball under the water for a long time. When the market decides to recover, one can expect it to bounce back up in force very rapidly. The other side of the coin is that the market could correct another -6% to test out the lows of April 2nd. Its best to stay in CASH for now until the institutional selling ceases.

Market has corrected across all major sectors in the last 6 weeks. The 2 major indexes, $SPY and $QQQ are below the 200 day sma(simple moving average). They have already been close to the 400 day sma and institutions never came in to support the indexes at the 200 day sma like they usually do. That does not bode well for the market. There are however several retail and healthcare stocks that have bucked the down trend. These are the kinds of stocks that one ought to have on their Watch List. Following are some of those stocks that have been holding up well during this correction. I have indicated the resistance point in parenthesis:

Retail:

$AAP ... (164.99)
$AZO ... (797.89)
$DECK ... (122.98)
$DG ... (110.70)
$FIVE ... (119.70)
$OLLI ... (89.95)
$ORLY ... (349.27)
$ULTA ... (276.98)

Health Care:

$AMED ... (118.60)
$BEAT ... (60.00)
$CNC ... (136.29)
$EHC ... (76.05)
$ESRX ... (95.38)
$EW ... (149.82)
$HCA ... (133.79)
$HMSY ... (32.50)
$HZNP ... (21.25)
$ILMN ... (322.24)
$MEDP ... (55.02)
$MMSI ... (61.18)
$PRAH ... (101.97)
$UNH ... (126.50)

Mentoring Program

Would you like to learn:

How to go about selecting the right Winning Growth Stock?
How to Buy the Stock Right?
How to Sell the Stock Right?
How to Plan Your Trade?

Schedule a FREE 30 minutes of "Discovery Call" with us to see how best our individualized program can make you a profitable investor. We have just 2 spots left open for December. Don't procrastinate and be left behind while the market continues to move forward.