How Good is Your Stock Watch List ?
"We've all heard the saying "timing is everything". This is just as true in the stock market as it is in life. Knowing the optimal time to buy or sell a stock is a valuable skill anyone can and should learn"
By William J O'Neil (Founder of Investors Business Daily)
I had published a Stock Watch List of 40 stocks in my post on September 27th. These were the leading stocks in the leading sectors at that time. As a retail trader, it's always a good idea to compare the performance of the stocks in your portfolio as well as stocks that one is monitoring against the major indexes of $SPY (General Market Performance) as well as $QQQ (Growth Stock Performance). It takes a lot of time and thorough analysis to do that but that's the only way I know how to develop a list of stocks that are true leaders in the market. It's best to be driven by data instead of our own opinions and biases about the stocks.
Here are the results of the performance of those 40 stocks in the last 4 weeks. Market has been trending sideways in the last 4 weeks. In 10 days the uncertainty of presidential elections will be out of the way. In 2016 November, we had a "Follow Thru" day soon after the elections and lots of stocks that were trending sideways just took off and never looked back. There is no guarantee that it will happen again but one must prepare for such an eventuality. As a retail trader and an investor, one must prepare to have some CASH available right now to be able to take advantage of such an opportunity.
I have highlighted the stocks that have continued to Out Perform the Market and are building bases to make the next move higher, once the uncertainty of presidential elections is out of the way. These stocks are also trending along or above the 21 day ema (exponential moving average). Stocks that are highlighted in red are the ones that I have removed from my watch list. They have maxed out and are trading below the 50 day sma (simple moving average).
- $APPS ... +14.45%
- $AVGO ... +4.74%
- $BBY ... +12.16%
- $BIG ... +7.09%
- $CPRT ...+9.62%
- $DG ... +3.38%
- $DHI ... +2.05%
- $DKS ... +6.60%
- $DOCU ... +3.52%
- $FDX ... +11.30%
- $FIVE ... +6.22%
- $FVRR ... +17.80%
- $GSX ... -31.90%
- $HIBB ... +17.53%
- $HZNP ... -0.83%
- $LEN ... +1.83%
- $LOGI ... +20.35%
- $MTH ... -1.76%
- $NVDA ... +5.64%
- $NKE ... +3.44%
- $NIO ... +48.20%
- $NTRA ... +3.75%
- $PTON ... +25.38%
- $RH ... +11.34%
- $ROKU ... +22.60%
- $SHAK ... +13.03%
- $SNAP ... +78.94%
- $SQ ... +12.41%
- $STNE ... +11.76%
- $TGT ... +3.78%
- $TTD ... +31.24%
- $TTGT ... +11.02%
- $TWTR ... +15.74%
- $VEEV ... +8.39%
- $W ... -9.78%
- $WMT ... +4.73%
- $YNDX ... -6.38%
- $ZG ... -5.14%
- $ZM ... +2.97%
- $ZS ... +6.35%
Analysis :
6 losing positions average loss -9.30%
34 Winning positions +13.09%
40 stocks on the list average +9.73%
26 stocks highlighted average +15.99%
$SPY performance same period +5.19%
$QQQ performance same period +4.95%
Stocks in my portfolio (performance same period) :
$AMZN ... +3.87% (read my blog post Sept 13th)
$NVDA ... +5.64%
$NIO ... +48.20% (will post a blog on it)
$PYPL ... +8.43% (will post a blog on it)
$RH ... +11.14% (read my blog post Oct 22nd)
Average performance of these 5 stocks is +15.46% since Sept 25
Average performance of $SPY and $QQQ is +5.07% since Sept 25
My 5 stocks have Out Performed the Market by 3.05 times.
26 stocks highlighted above have Out Performed the Market by 3.15 times.
This sort of analysis and evaluation of portfolio is the best way to know if you are in synch with the market. As a Growth Stock investor and a trader, one must remove the emotions of greed, fear, hope and ego in evaluating the stocks. Being data driven helps one remove biases that we are all exposed to in the print and television media.
Good luck trading and be sure to exercise your vote on Nov 3rd.
Happy Trading!
Amin
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