Investor Spotlight

Sunday, August 18, 2019

Follow Thru Day Worked For Me

Tuesday August 13th, we had a powerful 4th day of market rally. $SPY staged a +1.5% gain while the leading Growth Stock index $QQQ rallied +2%. Trading volume was higher than the average trading volume for both the indexes. IBD(Investors Business Daily) changed the market pulse to "Market in Confirmed Uptrend". This is how you time the market. I was mentioning to my IBD Investors Meetup group on Tuesday night that effective Wednesday August 14th, one should start dipping their toes back in the market with a small test position. I had once again emphasized to the Meetup members that:

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.

There were 4 positions initiated at the market open on Wednesday. They were:

$MTH ... (55.81) $62.00
$PCTY ... (103.71) $102.12
$PAYC ... (239.33) $238.42
$SBUX ... (95.21) $95.91

I have indicated the resistance points for each of these stocks in parenthesis. Follow along with me and check the performance of these positions this coming week.

Currently, all these stocks are trading above the 20 day sma(simple moving average). They have gained +1.12% in 3 days last week while the $SPY is +0.27% and $QQQ is +0.09%. These 4 stocks are leading the market and the institutions are supporting it by propping them up and increasing their size of the positions in them. This happened inspite of the fact that we had a major market reversal on Wednesday. IBD changed the market pulse to "Market Under Pressure" the very next day.

Mentoring Program

I shall be opening up a few slots in September in my Mentoring Program. June, July and August training slots were very quickly snapped up and these months provided lots of opportunities to profit in the market. I will make just a few slots available in September if you are serious about speeding up your learning curve. We have already attained +20% 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 +10% gain in the next 4 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?