Why  I  Work  Sat/Sun

I follow Mr. Steve Burns of  'newtradereu.com'.  He tweeted the following yesterday and I retweeted it for my followers on my tweeter account @spotlightamin.  You should follow me as well as Mr. Steve Burns on tweeter.   We share a lot of good content on tweeter daily.  His tweet explains why I choose to trade and invest in Growth Stocks.  It takes a lot of discipline and focus to analyze the market every week.  It takes a lot of work to identify the stocks that are leading the market.  It takes even more work to decide:

• What to Buy ?
• When to Buy ?
• When to Sell ?
• How to Scale up with follow up buys ?
• How to Scale down with trailing stops ?
• How to mitigate Risk ?
• How to Stay in Tune with the Market ?

It's all worth it 

Mr. Steve Burns tweet:

Trading is a job. It's not passive income BUT, it's a job where:

You have no employees.

No boss.

No customers.

Location independent.

You get uncapped & exponentially growing salary.

Worth it?

Only if you're willing to endure the long & painful learning curve.

-@LoneStockTrader

Mentoring  Program

I shall be opening up a few slots in September in my Mentoring Program.  June and July training slots were very quickly snapped up and both of these months provided lots of opportunities for some quick profits in the market.  I will make a spot or two available in August if you are serious about speeding up your learning curve.  We have already attained  +26.60%  gain with the leading growth stock index $QQQ year to date.  Historically our best quarter is from October thru Dec.  It's quite possible that we could have an additional  +13%  gain in the next 5 months.  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? 

Contact us at:

investorspotlight@gmail.com

Happy Trading!

Amin

$CYBR  Outperformed  Growth  Stock  Index  by  +50%

"Worthwhile things are not built in short periods of time. They come from a consistent series of actions"

By Angela Kelly, soccer player/coach

How I traded $CYBR  since the  "Follow Thru"  day of January 7th  following the IBD rules of:

• Timing the market (must buy something on a "Follow Thru" day).
• Scaling into position as the stock makes gains of  +3%  to +5% (Buying High and Selling Higher).
• Staying in tune with the market (keeping track of the  "distribution days"  and the market pulse).
• Observing the 20 day sma(simple moving average) and its divergence from the 50 day sma (extended stocks).
• Observing the  "8 Week Hold Rule".

For study purposes, let's assume an investment of $10,000 investment in a stock at a time.  Following are the results of this winning stock that I had originally mentioned in my blog on March 31st (it's archived and can be accessed with a FREE subscription ... investorspotlight.blogspot.com)

1. Jan 7th  "Follow Thru"  day entry at $69.82 (143 shares)
2. Jan 16th scale in a 2nd position  at $80.75 since the initial entry was  +14%  within 7 days (123 shares).
3. Feb 13th take 1/2 of the position off to avoid a nasty earnings surprise the following day (133 shares at $87.79).
4. Feb 15th re-enter with $11676.07 (114 shares at $102.34). Stock surged during earnings and reached +20% within 2 weeks triggering the 8 week hold rule.  Plan to hold this stock through May 1st for more gains.
5. Mar 11th scale in a 3rd position at $107.65 (92 shares).
6. May 13th take 1/2 of the total position off to avoid a nasty earnings surprise the following day (169 shares at $123.35)
7. May 15th reenter the day after the earnings report with $20,846.15 (171 shares at $121.54)
8. June 10th  "Follow Thru"  day entry with a 4th position at $130.60 (76 shares)
9. July 18th scale in a 5th position at  $136.50 (73 shares)

Currently there are 5 positions totaling  $49710.31 of investment.  Total value at Fridays close is  $66,335.40  for a gain of  +33.44%  in 29 weeks.  Concentrating your portfolio into just a few winning leading stocks is the way to dramatically increase the size of your portfolio.  Diversifying is not the way to do it but concentrating to just a few stocks is.  $QQQ  the leading Growth Stock index is  +22%  and  $SPY  the proxy for general market performance is +17.60%  since the  "Follow Thru"  day of January 7th.  $CYBR  out performed the  $QQQ  by +50% and the  $SPY  by a whopping  +100%. 

Follow  the  Institutions

"You can't go by how you feel in the market. The only  thing that works well is to let the market indexes tell you when it's time to enter and exit. Never fight the market - it's bigger than you are."

By Mr. William J. O'Neil (Founder of Investor's Business Daily)

I have consistently expressed my views that it's the big institutions like the pension funds, mutual funds, hedge funds and professional money managers that account for the bulk of the daily trading volume in the stock market.  They account for over 75% of the total volume traded every day.  Lot of this is done with the aid of computers that are programmed with algorithmic trading modules.  We as retail traders and investors have to learn to interpret stock charts to evaluate the foot prints left by them in the market.  

There is a lot of noise in the media on a daily basis.  Lately we keep hearing of the inverted yield curve n how it's a precursor to the recession that will follow.  Some in media spout out that the transport sector and retail sector have to be uptrending for this market to continue on the bullish trend.  There is also scary tactics used to rile up the retail investors that the small cap index $RUT is not showing the bullish strength to confirm the present bullish trend.  It's best to look at the data and let our decisions be data driven instead.

Looking over the market data and the performance of the 3 major indexes and the 9 sectors of the market, here are the results of the performance since the lows attained on Dec 24th 2018:

Indexes:

1. $DJI      ... + 25%
2. $SPY    ... + 29%  
3. $QQQ   ... + 35%  

Sectors:

1. $XLK   ... + 41% (Technology)
2. $XLY   ... + 35% (Consumer Discretionary)
3. $XLI    ... + 30% (Industrials)
4. $XLF   ... + 27% (Financials)
5. $XLB   ... + 24% (Materials)
6. $XLP   ... + 23% (Staples)
7. $XLE   ... + 20% (Energy)
8. $XLU   ... +18% (Utilities)
9. $XLV   ... +15% (Health Care)

Historical  Perspective

The 3 indexes that I monitor - $DJI, $SPY and the $QQ are highly correlated.  Leading index is the Growth Stock index $QQQ.  We had a bull market from 1994 to 1999 during which time the small cap index $RUT was lagging the $SPY and the $NASDAQ.  Transport sector did only +69% while the  $SPY gained +215% and the  $NASDAQ  gained a whopping +423% within those 6 years.  $QQQ a Growth stock index that I monitor pretty much mirrored the performance of the $NASDAQ.

As retail traders and investors, we have to look at the market in an unbiased and an open mind.  It's best to look at the data that the stock charts and indexes provide us on a daily basis.  It reflects exactly what the institutions are doing.  Currently we have only 5 distribution daays between the $SPY and the $NADAQ.  For the last 2 weeks, the 20 day sma(simple moving average) has crossed over the 50 day sma in a distinct bullish move sloping upwards.  All the 3 indexes have cleared the long term resistance and the sideways consolidation of 17 months we had with the $DJI.  Longer the market continues to move up away from the long term resistance, greater the likelihood of the market to continue to making higher highs.  We have 10% of the $SPY companies reporting earnings this coming week.  This will be the week to see what stocks are breaking out.  That will give us the confirmation of where the institutions are deploying their capital.     

Where  are  we  Headed

Lately when I talk to people while I am walking in the neighbourhood or when I am making a presentation to investors groups, there is a hesitation on the part of the investors to be involved in the market.  I hear all kinds of reasons from them not to be in the market when the market is at an all time high.  I shall leave you with the following quote from Mr. William J. O'Neil:

"The hard - to - believe Great Paradox in the stock market is: What seems too high and risky to the majority usually goes higher eventually, and what seems low and cheap usually goes lower." 

Happy Trading!

Amin

Dow  Heading  to  30,000 by  Year  End

"What we learn from history is that people don't learn from history"

Mr. Warren Buffett

This is what I had written in my blog post exactly a year ago on July 8th:

"Market conditions have improved dramatically since Thursday June 28th.  Market is very efficient and all the news you hear on a daily basis about the North Korean rocket man, tariffs, interest rate hikes by the central banks of US/Euro Zone/Japan or the disruption of oil supplies and immigration reforms or the knee jerk reaction with every tweet that Mr. Trump discharges is all priced in with every stock.  I have often said that the market does not have any political bias or leanings towards any religion.  Markets don't really care for your opinions or your prayers either.  It is best to tune out all the noise in the market and just look at the data to guide your decisions.  Paying too much attention to every tick in the market and looking over your positions too closely on the computer is futile.  I can assure you, that will not move the stock and will only get you frustrated." 

Nothing has changed

Last year, $NASDAQ was  + 11%  during the first half of of the year.  This year, results are even better than last year as shown below:

• $DJI      ... + 16%
• $SPY    ... + 20%
• $QQQ   ... + 25%

Mr. Ryan Detrick of LPLA Financial had tweeted last week shedding some light on the historical performance of the market.  He tweeted:

"Past 3 times $SPY was  +15%  halfway through the year, final 6 months did really well".

He also stated:

"Past 10 years, July has been the strongest month for  $SPY"

You don't hear this on TV or print media.  All we hear is that this bull market has gone on too long and we have a yield curve inversion.  There is talk about the recession and the fact that earnings are going to be disappointing.  

Nonsense

I would just like to remind all my readers that in July of 2017 as well as July of 2018, we had a  "Follow thru"  day in early July and the market began to post higher highs in the weeks and months to follow.  That's what the recent history suggests.  We have been in a sideways market for the past 17 months with the  $SPY  and  $QQQ.  $DJI  has been in the sideways market for the last 10 months.  As of a a week ago, all the 3 major indexes have their 20 day sma(simple moving average) heading up and crossed over the 50 day sma.  That's a very bullish move.  They are all printing their all time highs now and there is very little overhead supply of seller now.  Longer the market moves sideways now, higher the likely hood of the the market forming a new base to propel us higher.

That's the data

No one can predict what the market will do on any given day.  Looking over the data and the recent historical performance of the 3 indexes, it's quite feasible for the market to make another  +10%  or more of the gains in the next 6 months.  4th quarter is our strongest quarter historically.  Looking over the data for the past 50 years, the last quarter median performance has been  +4.52%.  DOW  printing 30,000 by year end is quite feasible. 

Happy Trading!

Amin