FOCUS  ...  Be  Patient  and  Stay  Calm

"Obstacles are those frightful things you see when you take your eyes off your goal."

Henry Ford, car producer

There is a lot of noise and fear out there in the market.  Listening to the news media and watching tv all day long is not going to stop the pandemic.  Do the right thing and just stay home.  Don't engage in conversations on social media about the pandemic or the stock markets.  It's going to depress you and compromise your immune system.  Use your time wisely and instead:

• Get a good night sleep.  You now have an opportunity to catch up on your sleep.
• Start your day performing stretches and light exercises.  You always wanted to get in shape and now you can actually follow your New Year's resolution.
• Eat a healthy breakfast to start your day.  It will help you kick start your day without the pressures of having to run out the door to your job.
• Get dressed up as if you are going to work or school.  Now is a perfect time to polish up your trading skills and look over your weaknesses.  
• Take an online class on trading and investment.  Watch some utube videos of some of the professional money mangers.  Learn what traits and discipline they possess that makes them successful.  
• Communicate with friends, relatives and acquaintances that motivate you and keep you energized.
• Learn to read stock charts and back test your system of trading and investing.
• Polish your system of trading and write it down.  Identify your rules of when you will buy stocks, when you will sell them for a profit or a loss and how long will you hold on to that stock.  This will be your system of rules that will help you develop a Trade Plan for every stock you initiate a position on.
• Prepare and update your stock watch list everyday.  Do lots of  "Virtual Trades"   (utilizing your brokers platform on your virtual account) and back test your system.

Market   Condition

Market has been attempting to rally for the last 2 weeks. It has not undercut the bottom we had reached on  $QQQ  on March 16th or the  $SPY  on March 23rd.  $XLK(technology sector)  is the leading sector during this bear market and it too reached the bottom on March 23rd.  Institutional buying volume has not exceeded the selling volume we had that led us to the bear market.  That is a big negative with this attempted rally.  We could experience a  "Follow Thru"  day if the above 2 indexes continues to head higher and not undercut the lows of March 23rd.  

Market skipped a beat on Feb 24th and Feb 25th.  It's beginning to recover slowly.  Big negative is that both the  $SPY  and  $QQQ  are trading below the 200 day sma(simple moving average).  If we do get a  "Follow Thru"  day, it's likely that it might fail.  The technical damage done to the market is very severe.  I have not witnessed this sort of a damage in my life time.  There is sheer panic.  It's also quite possible that we might test the lows of Dec 24th 2018 with the  $QQQ  and the lows of Nov 4th of 2016 with the  $SPY.  That will take us down to  -50%  correction from the all time highs we reached less than 5 weeks ago.  It's best to head into the next week with an open mind.  Let the market tell you when it's ideal time to get in the market and keep emotions and ego in check.  It's better to spend the time to prepare a stock watch list instead of being consumed by the pandemic and market chatter in the media. 

Stock   Watch   List

Here are some of the stocks that I consider to be the next leaders when we get a  "Follow Thru"  day.  They are all above the 50 day sma and showing a high relative strength of  95  and above.  Some of them are already extended.  Such extended stocks may provide an opportunity if they retrace to the 50 day sma and continue exhibiting an RS ratings  above  95.  I have highlighted  the price in parenthesis that I am monitoring.  These are not to be construed as buying points.  This is my list for you to use as a guide to help you learn to develop your own watch list with an appropriate entry point.  

1. $AMZN   (1954.51)
2. $AMD      (   49.25)
3. $CHWY   (   34.90)
4. $DOCU   (   92.65)
5. $DXCM   ( 275.90)
6. $GSX      (   42.07)
7. $MSCI     ( 296.40)
8. $NEM     (   45.71)
9. $NFLX    ( 359.85)
10. $NVDA   ( 259.50)
11. $PLMR    (  55.67)
12. $RNG     ( 252.30)
13. $TEAM   ( 156.22)
14. $ZM       ( 137.25)   
15. $XLRN    (  92.38)
16. $KPTI     (  22.00)
17. $MRNA   (  26.55)
18. $MNTA    ( 31.90)
19. $RCUS    ( 12.06)

Stay Safe

Stay healthy in body, mind and spirits.

This pandemic and the bear market will come to pass.

Trust and believe in yourself.

Good days are ahead of us to recapture what we have lost in the market.

Happy Trading!

Amin