Stock Watch List
It was a very ugly day in the market today. In just 13 trading days (2 weeks and 3 days), $SPY has dropped -18.95% and the Growth Stock Index $QQQ has dropped -16.43%. IBD Investor's Business Daily) called 'Market in Correction' on February 25th. $QQQ was hovering below the 50 day sma (simple moving average) and the $SPY was below the 100 day sma at that time. Every retail trader ought to have have been scaling down gradually, once the stock reached the 34 day ema (exponential moving average). There was absolutely no reason for any Growth Stock investor and a trader to have faced such losses as what the above 2 indexes have experienced. It's all about following the IBD rules of mitigating losses at no more than -7% to -8% from when the stock position was initiated or scaled into.
Currently the $QQQ had breached the 200 day sma but the institutions came in late in the day and helped prop it up right around the 200 day sma. $SPY on the other hand has plummeted to the 600 day sma. Both these indexes are hanging onto the thread at these levels. It's quite likely that they may breach these levels and drop down even further to lead us into the bear market territory. It could just as well bounce back up like it did last Monday Mar 2nd. It's prudent to stay calm and be patient at this time. There is outright panic in the market. You might as well throw away all your books on technical analysis out the door. Stay calm and focused on reading stock charts with price and volume action. Scrutinize the charts and only have the best of the best leading Growth Stocks on your list.
I am focusing my attention for the next week or two on constantly building a Stock Watch List. There is a lot of technical damage done across the board on all leading stocks currently. I am raising my standards and only looking at stocks that meet my criteria that I mentioned in details in my blog post of yesterday (Sunday March 8th). I have identified the price levels in parenthesis. These prices will change as the market progresses. They are not to be considered as buy points. We all need to give time for these stocks to build proper bases after the sellers have all capitulated. We are going to have an opportunity of a lifetime to make substantial gains when we finally get a successful 'Follow Thru' day.
My current list:
- $DXCM (275.90)
- $MNTA ( 31.90)
- $MRNA ( 26.55)
- $NVDA (248.55)
- $NVRO (134.61)
- $RCUS ( 12.06)
- $RNG (200.00)
- $TREX ( 99.64)
- $VRTX (239.40)
- $VVNT ( 17.50)
- $XLRN ( 92.38)
- $ZTS (138.60)
Always get a good night sleep and start your day with a very healthy breakfast. Listen to music to calm your nerves. Go out for a walk in your neighbourhood and enjoy the sights and the sounds and the smell of nature. Do some stretches before you take a shower in the morning. Stay around people that motivate you and the ones that are not focused on the news media. You will be amazed at how all these habits will improve your trading. It most certainly has improved mine.
Happy Trading
Amin
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