Happy  New  Year

"Cheers to a New Year and another chance for us to get it right"

By Oprah Winfrey (media executive)

Currently as of Friday Dec 28th, the leading Growth Stock Index  $QQQ  is  - 1.79%  year to date.  That's a far cry from the  + 31.36%  we experienced in 2017.  It would have been  - 8.39%  had we not had a surge of  + 6.60%  within the 2 days after the Christmas day.  It was a confirmed rally with trading volume almost twice the average daily volume.  Christmas week usually is a lighter volume week.  That's a good sign that the market may be righting itself after 8 weeks of stomach churning volatility in the market.  We had 2  "Follow Thru"  days - November 7th and November 28th that failed miserably.  The index was just not able to punch through the 200 day sma(simple moving average) and ended up plummeting below the 400 day sma.  We are not out of the woods yet.  We need for the institutions to continue to participate in the market like the way they did during the 2 days after Christmas day.  The index is still   8%  below the 50 day sma. 

Trade  Less  Trade Smart 

I picked up the above quote from the IBD(Investors Business Daily) publication of Dec 31st 2018.  Over the weekend I did some studies on the  $QQQ  in order to improve the results of my trading.  I came up with the system of just trading 6 times a year with  $QQQ  in 2018  stress free for a gain of  + 8.46%.  Its a system where you buy at open as soon as IBD declares a  "Follow Thru"  day.  The index has to be above the 50 day sma.  You get out as soon as it hits the 50 day sma.  Here are the details of those 6 trades.  I have indicated the entry and exit dates.  Profit or loss is in parenthesis.  You would have avoided the failed  "Follow Thru"  days of  Nov 7th  and  Nov 28th  since they were below the 50 day sma.

1. Jan 2nd - Feb 5th           (+1.04%)
2. Feb 14th - Mar 19th        (+ 1.80%)
3. April 11th - April 20th      (+ 2.68%)
4. May 4th - June 28th       (+ 2.34%)
5. July 9th - July 30th         (+ 0.66%)
6. August 7th - Sept 18th    (- 0.06%)

Beauty of this system is that you would be in the trade from 2 weeks to 8 weeks.  Its a passive system.  You mitigate the risk of earnings reversals that you get with the stocks.  Best of all ... YOU SLEEP PEACEFULLY

Mentoring  Service

Did your portfolio suffer a  -20%  decline prior to Christmas day?

If it did than you need to start asking questions about what it is that you are doing wrong!  2018  was a bullish year if you had migrated to  CASH  after October 10th.  Make a  New Year's resolution to get it right as per Oprah Winfrey's quote.  Learn:

• How to find winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stock Right?
• How to TIME the market?
• 
  

I shall be opening up a very limited number of slots for mentoring in 2019  if you are committed to improving your performance in 2019.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2019.  It's going to be a very challenging year.  2016  and  2017  were easier markets to make the money.  The strategies that worked in easier markets will not work well in 2019.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com  

Have a Very Happy, Healthy and a Prosperous 2019

Amin

   

Merry  Christmas

This is the time of the year when we should give thanks for the abundance we have in our lives and share our times and joy with the people we love, admire, cherish and respect.  Sometimes we get busy with our lives in pursuit of our careers to create wealth and a healthy portfolio for our retirements.  All that is important.  However its not as important as the people in our daily lives that make our life easier and those that support and encourage us in our endeavors.  I am very appreciative of the carrier that delivers my local newspaper Tampa Bay Times along with IBD(Investors Business Daily) + Barrons magazine at 4 am in the rain and nasty weather, 2 lawn mowing guys that keep my yard clean and neat, the garbage man that never fails to pick up my garbage every week and the waiter that pours my coffee for me when I am at a restaurant.   

I would personally like to thank my followers that read my blog every week and share their comments with me.  It was a horrible week in the market last week with over  -8.4%  drop in the leading Growth Stock index  $QQQ.   I had received numerous phone calls, text messages and emails asking me for advice as to what to do with their stock holdings going forward.  I am not a financial advisor and everything I publish in my blogs and tweets that I post are for educational purposes only.  My blogs are very straight forward and I present data as it unfolds in the market.  One should have started scaling out of the market into  CASH  as of October 5th when the major indexes  $SPY  and  $QQQ   had plummeted down to the 50 day sma(simple moving average).  That is the system of investing that I have been teaching my students for the past several years.

Market  Outlook

My suggestion this week is for everyone to enjoy the holidays in which ever way that will bring joy to you and keep you healthy emotionally.  We are in the bear market right now.  Bear market of 2008,  $QQQ  had dropped by  -50%  from August to November (4 months).  We have already dropped  -21%  in the last 3 months.  Trading volume during the Christmas week tends to be light.  If you are already in  CASH  than just let the market come to you.  Eventually all this  "Distribution"  from heavy selling will cease.  We will have a  "Follow Thru"  day  and the resumption of the uptrend in the market.  Have patience.  This is not the time to be taking any position in the Growth Stocks.  There is a lot of technical damage done to most stocks.

In my talks to the local investors groups in my area and to the students that I mentor, I often say that that these severe corrections are the kind of markets we all ought to be looking for.  These severe corrections in the market resets the bases once they undercut the previous bases.  During the "Follow Thru"  days after such severe corrections, leading stocks rise very rapidly.  It's not unusual to make a quick  +20%  or more within a week to 3 weeks in the leading stocks.  Conserve your trading capital as well emotional capital now in order to benefit from the opportunities to profit handsomely in the market.  

Mentoring  Program

Leading Growth Stock index  $QQQ  attained a performance of  +32%  in 2017.  This year it was  +12.73%  in the first 8 months from January to August .    We gave all that up and went into negative bear market territory  -21%  within the last 10 weeks.   Are you getting frustrated that you have been left behind and not fully able to capture the market rally we had in the first 8 months of this year?  Did you give up all of the gains made this year and slid your portfolio into negative territory?  No one should allow themselves to be in this situation ever.  Learn to  TIME  the market for proper entry as well as exit.  It can be learnt.  It requires a commitment and a resolve on your part to make this change.      

Schedule a 30 minutes of  FREE  "Discovery Call"  with us.  I will try to get you on board if you are committed to learning our system to Out Perform the Market.


Happy Trading!

Amin

  

Take  a  Vacation

I took several days off this week and headed out to Disney Resorts for some fun and relaxation with the family.  I wasn't too concerned about the market.  It's not going to go gangbusters without me.  I had already migrated to CASH gradually as of October 5th.  That has been my consistent message for the last several weeks in my blog posts.  The only thing to do now is just prepare a good Stock Watch List and exercise it when the market conditions improve.

Market has been very ugly since October 5th.  That's is the day when the  $SPY(proxy for general market performance)  as well as the  $QQQ(proxy for growth stock performance)  sliced down the 50 day sma(moving average).  We have lost all the gains that we made this year and more.  Lessons learnt is to pay a very close attention to the 50 day sma and the  "Market Pulse"  that's mentioned by the IBD(Investors Business Daily).  The tone of the market had changed by October 10th when the IBD indicated the change in the  "Market Pulse"  to  "Market in Correction".  That's is a signal to tell the retail investors to start migrating to CASH  and preserve the portfolio from eroding any further.  At my IBD Meetup group on October 9th I had alerted to the members the seriousness of the train wreck we were facing.  By the following day, the  $SPY  as well as the  $QQQ  had both sliced down to the 200 day sma.  

Ouch!  Ouch!  Ouch!

Migrating to  CASH  gradually from October 5th to the 9th  would have allowed you to mitigate losses from the current loss of -13.5%  in  $QQQ  to only  -3%  from the all time highs achieved on Oct 1st.  This requires the discipline and following the IBD rules without questions asked.  Hoping and wishing for the market to come back is futile.  It erodes your portfolio and at worst it shakes up your confidence.  Erosion of your emotional capital does a real damage to your ego and it stunts you from making a commitment during a  "Follow Thru"  day.  The last 2  "Follow Thru"  days have fizzled but when they actually do materialize, you get some real huge winners within a week to 3 weeks.  Preserving capital is the key to spicing up your portfolio.  

Plan  of  Action

In the plains of Serengeti, you will find two male elephants fighting during the mating season.  You will hear all the grunts and clashing of tusks between the males.  After a fierce fight, some small trees will get knocked down and there will be a dust storm from all their macho shuffling.  Grass and other vegetation gets trampled on and destroyed.  That is exactly what is happening in the market right now with the hedge funds.  On any given day, the  $SPY and  $QQQ  will move  2%  from highs to the lows.  That sort of volatility will destroy your portfolio.  Its best to stay out of the harms way while the hedge funds that are the titans are slugging it out.  Retail investors will get trampled on in the current environment.  This is the time to just stay out of the market.  It is a good time to polish up on your trading skills and read some good books on investing and trading Growth Stocks.

Mentoring  Program

Would you like to learn:

• How to read the signals that the market gives you so as to avoid the market crash we had in 1987, 2000 and 2008/2009.  Learn how to avoid  -40%   to    -50%  loss of your portfolio during such a market crash.
• How to consistently Outperform the Market like I do?

Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com

We have only 2 spots left.  You know your hedge funds and mutual funds are not going to protect your portfolio during a severe market correction of  - 10%  to  - 20%  that we are dealing with right now.

  

  Invest in yourself and take control of your financial future.  Don't procrastinate and contact us.  I will open spots for just 2 dedicated investors that want to learn and profit in the market.

Happy Trading!

Amin

CASH  is  King

"This year has seen a number of one - day meltdowns like Tuesday's. We strongly suspect that they were not driven by capitulating humans but engineered, literally, by computer-driven trading algorithms"

By Ed Yardeni(Yardeni Research)

Currently the leading Growth Stock index  $QQQ  has plunged from the 200 day sma(simple moving average) all the way down to the 400 day sma.  This is very concerning.  Similar thing happened from January 2016 to the lows in mid February 2016.  If similar scenario is to play out this time around, one can expect for the market to drop down another -5% to -8%.  Dr. Yardeni makes a good observation with a statement above that was published in the Barrons magazine over the weekend edition of Dec 10th.  If this were to happen, one could expect the  $QQQ  to drop down from the current levels of $161.38 all the way down to the levels past the February 9th 2018 lows.  That would essentially be a -20.25% correction from the all time highs achieved on Oct 1st of this year.  You would have to attain a gain of  +25%  just to break even.  This is why it's critical that retail investors close out their losing positions and conserve  CASH.    

According to IBD(Investors Business Daily), they had changed the market pulse to  "Market in Correction"  as of the market close on October 10th.  $QQQ  index had dropped down to the 200 day sma and it was time to start migrating to CASH and conserve the capital.  That was a loss of  -7.76%  with  $QQQ.  Not taking any defensive action at that time would now result with a loss of  -13.32%.  The next leg down will result in a further loss of another  -7%.  We as retail traders do not have an access to the algorithms that hedge funds utilize to automate their trading.  What we do have however is the nimbleness to get out of the market when the market pulse according to IBD, changes to  "Market in Correction".

Performance  of  My  14  Stocks

I had identified 14 Health Care stocks in my blog post on November 18th that met my very strict criteria of selection of the leading stocks in the leading sector. They all had an RS(Relative strength) ratings above 90.  11 of them had the ratings of 93 and above and they were all hovering around the 20 day sma while the  $QQQ  was under pressure trading below the 200 day sma.  These stocks have withstood the carnage in the market since October 5th.  Institutions supported these stocks while dumping other stocks in the other 8 sectors of the market.  Below is the comparison of the performance of these stocks with the $QQQ  since the  "Follow Thru"  day on Thursday Nov 29th:

1. $QQQ      ... - 3.94%
2. 14 Stocks ... - 3.70%   

The 14 stocks lost less than the leading Growth Stock index.  They are also trading above the 50 day sma and most of them are still above the 20 day sma.   $QQQ  on the other hand is depressed down all the way to the 400 day sma.  In order to conserve the capital, only 2 stocks are held currently - $AMED  and  $EW.  Both of these 2 stocks RS ratings has notched up last week.  That indicates the support of the institutions.  

Mentoring  Program

Would you like to learn:

• How to read the signals that the market gives you so as to avoid the market crash we had in 1987, 2000 and 2008/2009.  Learn how to avoid  -40%   to    -50%  loss of your portfolio during such a market crash.
• How to consistently Outperform the Market like I do?

Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com

We have only a handful of spots left.  You know your hedge funds and mutual funds are not going to protect your portfolio during a severe market correction of  -10%  to  -20%  like the one we are facing right now.
  
  Invest in yourself and take control of your financial future.  Don't procrastinate and contact us.  I will open spots for a few dedicated investors that want to learn and profit in the market.

Happy Trading!

Amin

You  Can  TIME  The  Market   ... YES

Ideal time to get in the market is when IBD(Investors Business Daily) changes its market pulse to  "Market in Confirmed Uptrend".  On Wednesday Nov 28th, we had a confirmation of the 4th day of attempted rally in the market.  $SPY  as well as  $QQQ  had surged from the lows of April 2nd and heading up from the 400 day sma(simple moving average)  towards the  200 day sma.  Thursday was an ideal time to start taking a small position in the leading stocks.  Leading Growth Stocks tend to break out of the pack in the first week or so and start making gains immediately.  We had 7 weeks of heavy institutional selling since the beginning of October.  Migrating to CASH as of October 5th was an appropriate defensive action to take with your portfolio.

Market  Outlook

Its always best to look at the data that the market provides.  I know its very hard to control emotions of fear when the market continues to make all time lows.  In my post last week I mentioned that the market could go lower further  -5%  towards the February lows if the institutions continue to exit the market.  Conversely I also suggested to the possibilities of the market surging over  +9.74%  within 4 weeks like it did so in January of this year.  Retail investors have very little control over what the market does.  We have to watch the behaviour of the institutions since they are the ones that determine the direction of the market. 

Here is the performance of the 3 major indexes as well as the leading sector last week:

• $SPY    ... + 4.71%
• $DJI      ... + 5.16%
• $QQQ   ... + 6.38%
• $XLV     ... + 6.95% (Health Care Sector)

Stock  Positions  Initiated  

Its critical to have a strong Stock Watch List prepared when the market is correcting like it did since the beginning of October.  Being in  CASH  allows you to preserve your emotional capital as well.  This allows you to focus on the upcoming opportunities.  Market is exhibiting a very bullish stance right now.  December is traditionally the best performing month.  We have winds to our back right now.  The 4th quarter and the two following quarters after the mid term elections are historically the best performing quarters.  

There were 14 Health Care stocks listed in my blog post on November 18th.  Small stock positions were initiated at market open on Thursday November 29th just when IBD changed its market pulse to   "Market in Confirmed Uptrend".    These are the stocks that survived the market carnage.  They are all exhibiting an  RS (relative strength) ratings above 90. They are all holding up above the  8 day ema(exponential moving average) while the  $QQQ  the leading Growth Stock index is still below the 200 day sma.  This is what the institutional support looks like.  They offer the best odds of surging in price with institutional support.  They are already  + 1.02%  within 2 days.  I have indicated the entry price at market open on Thursday.  

1. $AMED   ... 132.75
2. $BEAT     ...  69.73
3. $CNC     ... 140.12
4. $EHC       ...  72.54
5. $ESRX    ... 100.41
6. $EW        ... 160.67
7. $HCA      ... 143.52
8. $HMSY    ...  34.76
9. $HZNP     ...  20.38
10. $ILMN    ...  332.00
11. $MEDP    ...  57.96
12. $MMSI     ...  61.20
13. $PRAH    ... 110.01
14. $UNH     ...  280.43

Mentoring  Program

Would you like to learn:

• How to read the signals that the market gives you so as to avoid the market crash we had in 1987, 2000 and 2008/2009.  Learn how to avoid  -40%   to    -50%  loss of your portfolio during such a market crash.
• How to consistently Outperform the Market like I do?

Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com

We have only a handful of spots left.  You know your hedge funds and mutual funds are not going to protect your portfolio during a severe market correction of  -10%  to  -20%  like what we just witnessed in the last 7 weeks.  Invest in yourself and take control of your financial future.  Don't procrastinate and contact us.  I will open spots for a few dedicated investors that want to learn and profit in the market.

Happy Trading!

Amin