Investor Spotlight

Sunday, June 9, 2019

YES ... You Can TIME the Market

I believe in simplicity in the market. Too often we as traders and investors get too involved in analyzing all the politics and the news in the media. It's good to remind ourselves that the market is a collective result of all the buyers and sellers in the market. It's mostly institutions like hedge funds, mutual funds and pension funds that account for over 75% of the trading that occurs daily in the US stock markets. Their market sentiments is what drives the markets. When their sentiment changes from being a net seller (bearish) to a net buyer(bullish), it shows up in prices moving higher in higher volume of trading.

Friday June 7th, the market staged a 4th day of rally during the week. $QQQ the leading growth stock index that I monitor, staged a +6.5% rally last week off the lows we had attained on the disastrous day we had in the market on Monday, the beginning of the week. IBD(Investors Business Daily) changed the market pulse to "Market in Confirmed Uptrend" as of the market close on Friday. That is the "Follow Thru" day we as retail traders ought to pay attention to. That's the day the market sentiments of the institutions changed from the bearish camp to the bullish camp. I have often said in my posts that we need to follow the lead of the institutions.

Game Plan

Monday morning one should have a list of stocks to make an intital purchase to test out the "Follow Thru" day. Not all such days will materialize but history indicates that the leading stocks will quickly move up +10% to +15% within days or couple of weeks with a successful "Follow Thru" day.

Don't buy CHEAP stocks. They are cheap because institutions do not want them.
Buy HIGH and sell HIGER. Institutions drive the price of the stock higher because they are accumulating a position in that stock.
Buy the LEADING stocks that are in the leading industry groups. You only want the best of the best merchandize out there.
Look for stocks that are trading above the 20 day sma(simple moving average). That indicates that the institutions are supporting them while the Indexes are still hovering around the 50 day sma.
Look for stocks that are showing a rising RS line with a ratings above 94. These are the stocks that are outshining the rest of the stocks in the stock market.

Have a look at my blog post from last week (June 2nd blog post) to get some ideas on what sorts of stocks to generate to be worthy of finding a place on your Stock Watch List.

Mentoring Program

I shall be opening up a few slots over the summer months (August and September only) in my Mentoring Program. Summer months are slow months usually in the market. Historically our best quarter is from October thru Dec. Now is an ideal time to learn to trade and invest utilizing growth stock strategies of IBD(Investors Business Daily).

Schedule a FREE 30 minutes of "Discovery Call" with us and investigate how our program can help you learn the basics of reading the Stock Charts:

How to find the winning Growth Stocks?
How to Buy the Stocks Right?
How to Sell the stocks Right?
How to TIME the market?
How to protect and harvest your profits?