Do  Not  Diversify

Concentrate  your  Portfolio  instead

https://youtu.be/H3Q8a9imiFs

"Diversification is a protection against ignorance"

"We think diversification as practiced generally makes very little sense for anyone that knows what they are doing"

"We like to put a lot of money in stocks we strongly feel about"

By. Mr. Warren E. Buffett (CEO of Berkshire Hathaway)

There were 19 stocks that I had listed in my post of November 3rd (6 weeks ago) that were showing signs of institutional support.  Most of them have been consolidating and trending along the 10 day sma(simple moving average) since than.  In my post of last Sunday Dec 8th, I identified the ideal buy point for each of those stocks.  These were not recommendations.  I was pointing them out to share my expertise to help you practice with your virtual account.  These buy points are early entries for a small test position to identify true leading Growth Stocks that perform better than the leading Growth Stock index $QQQ.  10 of those 19 stocks triggered a buy order last week.  Here are the results of the performance of those 10 stocks as compared to $QQQ.

1. $ALGT +5.50%
2. $AMKR +6.14%
3. $IPHI    +7.02%
4. $MKSI  +1.49%
5. $ORLY  +0.11%
6. $ROCK  +0.15%
7. $TPX    +3.46%
8. $BLD   -0.98%
9. $OLED  -0.95%
10. $RNG   -1.10%
11. $QQQ  +1.02%

Professional money managers that run hedge funds, pension funds and mutual funds, often underperform the general market as measured by the performance of the $SPY.  Retail investors that concentrate their portfolio to a few leading growth stocks have a better chance of out performing the leading growth stock index $QQQ.

The top 3 stocks mentioned above did 6 times better on an average than the $QQQ.  If you owned these 10 stocks, you ought to close out the losing positions first and use the proceeds to accumulate more shares of the top winning stocks.  They have already proved their worth by massively Out Performing the Growth Index.  According to IBD(Investors Business Daily), if you have a portfolio of $250,000, you should have a portfolio of no more than 6 stocks to begin with.  The way to profit in the market is to concentrate your portfolio to just a few stocks.  You are reducing the risk by owning just a few stocks.  The more stocks you own, the more you are exposed to the risk of exposure to a wide range of stocks. 

Happy Trading!

Amin  

Stocks  Institutions  Have  Exhibited  n  Interest  In 

Here is a list of stocks that have either gapped up in price or the stock has risen 20% or more within 3 weeks from its ideal buy point.   They are currently trending along the 10 day sma(simple moving average) and consolidating the gains achieved since they broke out during the last earnings report.  These are the stocks that no one hears about on the daily chatter in the news media.  This is why it's best not to get your stock and trading ideas from watching CNBC, FOX, Bloomberg or Yahoo news.  They do not have your best financial interests at heart.


I had listed these stocks in my blog post of Nov 3rd (5 weeks ago).  I had mentioned in that blog post that I shall discuss some rules for ideal entry points and some basic rules to follow.  Please don't consider these as my recommendations.  It's meant to share my expertise and to enable you to be able to read the stock charts.  It's meant to highlight some basic IBD (Investors Business Daily) rules of investing and trading leading Growth Stocks.  I have indicated ideal entry points in parenthesis.  Stocks that rose more than 20% within 3 weeks of ideal buy point are highlighted in bold letters.  These should be held for atleast 8 weeks since these are the stocks that tend to move higher from institutional demand.  A second position ought to be considered for such stocks if they continue to trend along the 10 day sma.  That is a sign of institutional support.

1. $ALGT  (165.06)
2. $AMKR (12.05)
3. $ATKR  (39.0)
4. $BLD    (107)
5. $BRKR (48.41)
6. $CRUS (70.0)
7. $FTNT (100.0)
8. $IPHI   (69.50)
9. $LRCX (265.85)
10. $MKSI  (108.0)
11. $OLED (196.23)
12. $ORLY (442.15)
13. $QRVO (99.50)
14. $RNG   (165.85)
15. $SPXC (47.12)
16. $TPX   (84.38)
17. $UCTT (20.60)
18. $UFPI  (47.50)
19. $ROCK (52.50)

Please make a note :

• Average price of these 19 stocks currently is $115.24.  Institutions don't buy cheap stocks and neither should you as a retail investor.
• These stocks have risen in price from institutional buying power.  Observe the sky scrapper volume on the stock charts.  
• Notice that these stocks began their uptrend when the 10 day sma crossed over the 20 day sma in mid October.  
• The major indexes - $DJI, $SPY and $QQQ also simultaneously had their 10 day sma cross over the 20 day sma.  Stocks were in synch with the indexes and correlated to the uptrend market direction.
• Once the stock makes a surge in price with the support of the volume from the institutions, it consolidates before making the next move higher.  It forms a new base - either as a 3 or more weeks of tight and orderly price performance.  Sometimes it retraces a bit for a couple of weeks to shake out the weak holders.

Mentoring  Program

Currently the leading Growth Stock index  $QQQ  has done +33% year to date.  That's a phenomenal performance.  

1. If you are struggling at increasing the size of your portfolio by out performing the $QQQ, than let us help you acquire that knowledge.  
2. If you are not able to identify the right leading growth stocks or ideal entry points to initiate the stock position, don't despair.
3. If you are not quite sure how to develop a trade plan to exit the stock for loss or profit or how long to be in that stock, reach out to us and let us help you become profitable.

Contact us at:

investorspotlight@gmail.com

I will take just a few mentees on a first come first serve basis only.  Once those few spots are taken, I shall close out the current enrollment sessions.  Don't procrastinate.  You can always make money if you have lost being engaged in the market since February of 2016.  You can never make TIME.  Schedule a 30 mins of  FREE  "Discovery Call"  with us and investigate  How best We Can Help You Become Profitable at Investing and Trading.

Happy Trading !

Amin

  

Opportunity  of  a  Lifetime

"If window of opportunity appears, don't pull down the shades"

By Tom Peters (American writer on business management)

"Opportunities are like sunrises. If you wait too long, you miss them"

By William Arthur Ward (writer of inspirational maxims)

For the last couple of years we have been hearing in the media that this bull market is about to end.  It's been going on for 10 years now.  For someone who keeps feelings aside and who keenly reads the stock and indexes chart, one thing that stands out is that the market continues to grind higher.  Since mid February of 2016 when the new bull market started, $QQQ  is  +69%  in the last 33 months.  That works out to be  +2.09%  per month (25% annual return).  Currently  $QQQ  is  +33%  year to date and we are heading into the best month of the year.  It would not surprise me at all if 2019 ends up with  +40%  for  $QQQ.  Picture is worth a 1,000 words and stock and index charts tells you everything you need to know.  Opinions of the self proclaimed GURUS of the market and hedge fund managers who express their opinions means diddly squat.  Market never cares about anyone's opinion.


I had written a post on November 10th with a heading  "You SNOOZE ... you LOOSE".  In that post I had highlighted some of my reasons as to why we may be heading into a 17 to 19 year cycle of secular bull market that started in March of 2009.  Baby boomers were the drivers of the market from 1984 to 2000.  $SPY  had gained  +813%  when the baby boomers reached their peak earning years.  Subsequently the market corrected  -49.2%  in 2000 dot com bubble.  We now have over 100 million millenials who will be at their peak earning years in the next 12 to 15 years when they reach 54 years of age.  Demographics is an important component of the market that we often overlook.



For the last 6 weeks, all the 3 major indexes - $DJI, $SPY and $QQQ  are trending just above the 10 day sma(simple moving average) in a very orderly fashion without much of a hiccup.  Distribution count stands at just 3 for the $SPY and 3 for the $NASDAQ.  Market looks very healthy with the unemployment hovering below 3.6%.  New home sales report posted last Friday indicated the best 2 months in the last 12 years.  Inspite of the tariff wars with Europe, China, Mexico, Japan and Canada, US economy is humming along.  $SPY is  +25.3% year to date and the $NASDAQ is  +30.6%.


I hope you all had a wonderful Thanksgiving Holidays with the family and friends.  Living in Florida this happens to be the best times with cool crisp dry air and pleasant temps with 70's at daytime and 50's at night.  Thanksgiving weekend is the start of the festivities of the year end holidays.  I would like to wish everyone a joyous time for the next 4 weeks.  I am including a link for you to enjoy the hymn of:

  'O Holy Night'

By Kerrie Roberts

https://youtu.be/EDUg88d9Hbw

ENJOY

Happy Trading!

Amin