$LULU  Winning  Growth  Stock

$LULU had a change of character on November 9th of 2017.  It bounced up above the 20 day sma(simple moving average) on that day and maintained its momentum until the market peaked on September 28th.  It ran from  $64.01 to  $162.48 in 11 months.  That's a whopping  +106%  gain in that time frame.  This stock continued to provide an opportunity for an investor to get in at an appropriate time during this profitable run without having to hold the entire position during the earnings announcements.  This is the stock that I often highlighted in my blog posts as one of the stocks that consistently appeared on my Stock Watch List.  It's also the stock that I brought into discussion and detailed analysis during our local Monthly IBD(Investors Business Daily) Meetup meetings in the Tampa Bay area of Florida.  

One could have entered into a small position on the  "Follow Thru"  day we had on January 7th at  $129.33.  It's up a whopping  +17.44%  in the last 3 weeks while the leading Growth Stock index  $QQQ  is  +5.50%.  On January 14th, we had a  "distribution day"     but this stock was supported by the institutions and it rose  +5.73%  that day in volume that was  2.5  times the average daily volume.  Stock was similarly supported by the institutions during the earnings announcement on March 28th, June 1st and August 31st of 2018.  Trading volume on these days was 5 to 8 times the daily average traded volume on this stock.  That's the foot print that institutions leave behind when they are accumulating a stock.

$LULU  is trading very tightly around  $150  level for the past 5 sessions.  Technically the stock is showing a lot of strength.  It's trading above the 20 day sma.  The 50 day sma and 200 day sma are both changing their direction upwards in a bullish fashion.  The 20 day sma has already crossed over both of these resistance lines with a bullish outlook.  Currently the stock is exhibiting an RS ratings of 97.  That means that the stock is out performing 97% of the stocks in the  $SPY  index.  Ideal buy point according to IBD would be  $164.89.  One could enter a small position or an add on position at  $160  as an aggressive buy point.  

Market  Outlook

Leading Growth Stock index  $QQQ  is  +15%  from the all time lows 5 weeks ago.  What we have witnessed is a V shaped rally off the lows on Christmas eve.  The index is still below the 200 day sma although the 20 day sma is beginning to turn up in a bullish manner.  No one can forecast what the market will do.  We should let the data and the stock charts be our guide.  We could retrace and retest the lows of Dec 24th.  It happened on Feb 11th 2016 when the lows of the Jan 20th 1016 was retested.  The other scenario would be what we saw on Feb 14th 2016  "Follow Thru"  day.  Market could just take off without looking back and go on to making superb returns like we did in 2016 and 2017. 

Mentoring  Program

"There will always be challenges, obstacles and less than perfect conditions. So what? Get started now. With each step you take, you will grow stronger ... and more and more successful"

By Mark Victor Hansen (author)

2018 will be a very challenging year in the market.  We are still not out of the woods yet.  We still need the 50 day sma to punch through the 200 day sma.  There is no guarantee that the market will continue it's bullish rally.  We could get the indexes to consolidate and possibly retest its Dec 24th lows. 

Schedule a  FREE  30 mins of  "Discovery Call"  with us and learn:

• How to find the winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Sell your Stocks Right?
• How to TIME the market?
• How to protect and harvest your Profits?

Contact us at:

investorspotlight@gmail.com

Happy Trading!

Amin

+14.66%  Within  2  Weeks

I have quite often mentioned the importance of a  "Follow Thru"  day in my posts.  An average investor n a trader doesn't quite grasp the importance of this very critical signal in the market.  Those of us that have become experts at reading the market and all its nuances know that one can very quickly make up +15% to +20%  within a 1 week to 3 weeks from a successful  "Follow Thru"  day.   $QQQ  the leading growth stock index had dropped by  -23%  by Christmas eve from its all time highs achieved in September 2018.  It had a severe drop of over  -15%  in the first 3 weeks of December alone.  That was quite alarming.  50 day sma(simple moving average) had already sloped down below the 200 day sma.  It was scary and it seemed like we were heading for a  -50%  drop like we had in the market crash of the year 2000 and 2008. 

Market took a rapid bullish turn as soon as we came back from our Christmas holidays.  On December 26th,  $QQQ  surged  +6.25%  with trading volume that was twice the average daily trading volume.  This was a wake up call to retail investors.  Institutions had already exposed their intentions that they were willing to support the market.  We still had to wait for a confirmation of the attempted rally in the market.  It was critical to have a ready list of leading growth stocks prepared.  Most of us were in a holiday spirit with family around and travelling.  The ones that continued with their discipline and their daily routine of looking over the leading stocks were about to hit the gold mine with a  confirmed "Follow Thru"  day on Friday January 4th.  If you didn't do your critical home work during the Christmas and new years holidays, you lost out on an opportunity to make quick profits within the first two weeks of a  "Follow Thru"  day.

Results  of  My  Top  10  Stocks

There were 18 stocks that I had listed in my post last week that one should have taken a small test position on January 7th at the market open.  These were the stocks that I had consistently highlighted in my weekly posts in October and November months.  These stocks were holding up above the 50 day sma while the market was crashing below the 200 day sma.  The top 10 stocks of the 18 have a performance of  +10.53%  on the low side to  + 17.70%  to the high side in the last 2 weeks since the  "Follow Thru"  day.  

Here are the results of those 10 stocks.  I have also highlighted the performance of the 3 indexes that I follow:

Indexes:

1. $DJI      ... +5.25%
2. $SPY    ... +5.45%
3. $QQQ   ... +5.56%  Leading Growth Stock Index

Stocks:

1. $BEAT    ... +17.70%
2. $ALRM   ... +17.42%
3. $TTD      ... +15.90% 
4. $VEEV   ... +15.77%
5. $MEDP   ... +15.52%
6. $TWLO    ...+15.34%
7. $EW        ... +13.68%
8. $CYBR    ... +12.46%
9. $NFLX     ... +12.25%
10. $FIVE      ... +10.53%

Growth Stocks tend to do 2 to 2.5 times better than the average performance of the market as measured by  $SPY.  Above 10 stocks had a performance of  +14.66%  on average.  That is 2.69 times the performance of the  $SPY.

Mentoring  Program

"There will always be challenges, obstacles and less than perfect conditions. So what? Get started now. With each step you take, you will grow stronger ... and more and more successful"

By Mark Victor Hansen (author)

2018 will be a very challenging year in the market.  We are still not out of the woods yet.  We still need the 50 day sma to punch through the 200 day sma.  There is no guarantee that the market will continue it's bullish rally.  We could get the indexes to consolidate and possibly retest its Dec 24th lows. 

Schedule a  FREE  30 mins of  "Discovery Call"  with us and learn:

• How to find the winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Sell your Stocks Right?
• How to TIME the market?
• How to protect and harvest your Profits?

Contact us at:

investorspotlight@gmail.com

Happy Trading!

Amin

 

YES  

You  Can  TIME  The  Market

Here is what I wrote in my blog post last week in my second paragraph.

"IBD changed the market pulse to  "Market in a Confirmed Uptrend"    as of the close of the trading session on Friday Jan 4th.  That's a signal to Growth Stock investors to start putting their  CASH  to work by initiating small positions on stocks that are breaking out now.  The last 2  "Follow Thru"  days of Nov 7th and Nov 28th had fizzled.  There is no guarantee that this  "Follow Thru"  day will work either.  One has to take the risk now and be exposed to the market.  These are the ideal times to initiate small test positions.  When the  "Follow Thru"  days do materialize, one can very quickly attain a   +15%  to  +20%   profits within 1 week to 3 weeks." 

The  "Follow Thru"  day worked like a charm this time around.  In my post last week I had alerted my readers to look over some of the stocks that I had highlighted in my weekly blog posts in the months of October and November.  Small size test positions should have been initiated on Monday January 7th at the market open price.  Here are the results of the performance of the 18 leading stocks on my watch list within one week:

1.   $BEAT    ... + 14.91%
2.   $MEDP   ... + 13.22%
3.   $WING   ... + 12.15%
4.   $NFLX    ... + 11.75%
5.   $CYBR   ... + 11.60%
6.   $INVA     ... +  7.84%
7.   $VEEV   ...  + 7.73%
8.   $TEAM   ...  + 7.41%
9.   $ALRM   ...  + 6.75%
10.   $UBNT    ... + 6.35%
11.   $HZNP   ...  + 6.27%
12.   $TTD      ...  + 6.15%
13.   $PLNT   ...  + 6.12%
14.   $NOW    ...  + 6.05%
15.   $TWLO   ... + 6.05%
16.   $FIVE     ... + 5.93%
17.   $EW      ...  + 3.14%
18.   $MPW    ... + 2.79%

Leading growth stock index  $QQQ  did only  +2.65%  in the same time frame.  Stocks that I have highlighted are the ones that outperformed the  $QQQ   by 2 to 5 times.  These are the true leaders exhibiting RS ratings above  95  and the  RS  line that is at an all time high as well.  To truly make a difference in the performance of your portfolio, one needs to concentrate the position in the top 5 to 8 stocks highlighted.

Market  Outlook

Most traders had thrown in the towel by Christmas eve and couldn't believe the buying binge that occurred right after the Christmas day.  The market gave us a very clear clue on that day that the institutions were deploying their profits by going on a buying spree.  The 3 indexes -  $DJI,  $SPY  and  $QQQ - had a surge from a V shaped bottom.  We don't know if we are completely out of the woods yet.  11 days of distribution we had prior to Christmas eve has dragged down the 50 day sma(simple moving average) in a downward bearish slope below the 200 day sma.  That is quite concerning.  We need these indexes to rise above the 200 day sma and the slope of the 50m day sma to turn decidedly upwards.  We have banks and transport stocks reporting earnings this week.  That will help us decide if this rally is for real and if we are in a definate uptrend like the one we had in February of 2016.  Market will consolidate these gains in the coming week.

Mentoring  Program

Did your portfolio suffer a  -20%  decline prior to the Christmas day?

Did you know what to look for when the  $QQQ   surged over  +6.2%  the day after  Christmas?

Ask yourself the question how you could have taken advantage of a  "Follow Thru"  day that we just experienced.

2019 will be a very challenging year and the best prepared and skilled traders and investors will do very well.  Make a commitment to yourself to learn:

• How to find the winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the Trade?
• How to Sell your Stocks Right?
• How to TIME the market?

If you are committed to improving your performance in 2019 than schedule a  FREE  30 minutes of  "Discovery Call"  with us.  Investigate how best we can help you become a consistent and a profitable trader and an investor in 2019.  It will be harder to make profits in 2019 due to increased volatility.  Let us help you sharpen your chart reading skills and what to look for in identifying the leading Growth Stocks.  Start this year with a resolution to invest in your investing education.

Contact us at:

investorspotlight@gmail.com

Happy Trading!

Amin

Scale  into  the  Market  NOW

  

"Not taking a risk is riskier than taking a risk"

By Mindy Grossman, CEO of WW International

Most retail traders and investors have dealt with a gut wrenching performance of the stock market in the last 12 weeks.  Growth stock investors that were disciplined and followed the IBD(Investors Business Daily) rules however had already started migrating to CASH as of October 10th.  They limited their exposure and exited the market when the market went into  a correction.  They avoided the erosion of their trading capital as well as their emotional capital in the last 12 weeks.  It allowed them to sit out the market and take the time to sharpen their trading skills instead. 

IBD changed the market pulse to  "Market in a Confirmed Uptrend"    as of the close of the trading session on Friday Jan 4th.  That's a signal to Growth Stock investors to start putting their  CASH  to work by initiating small positions on stocks that are breaking out now.  The last 2  "Follow Thru"  days of Nov 7th and Nov 28th had fizzled.  There is no guarantee that this  "Follow Thru"  day will work either.  One has to take the risk now and be exposed to the market.  These are the ideal times to initiate small test positions.  When the  "Follow Thru"  days do materialize, one can very quickly attain a   +15%  to  +20%   profits within 1 week to 3 weeks.  

Market  Analysis

Market made a dramatic turn after attaining a low on Dec 24th.  We had a rally of 4 days in the last 7 trading sessions.  Here are the results of the performance of the 4 major indexex as well as the  3 leading sectors: 

•  $DJI      (+7.5%),
•  $SPY    (+7.7%)
•  $QQQ   (+8.9%) 
•  $RUT    (+9.0%)
•  $XRT     (+10.9%)
•  $XLY      (+9.9%)
•  $XLK      (+6.6%)

It makes sense to focus our attention on the leading stocks in the leading sector.  Currently there are a lot of stocks in the retail,  consumer discretionary and technology sector that ought to be on your Stock Watch List.  You can review some of my weekly posts of October and November where I highlighted some of those stocks.  Use that as a guideline to generate a list of your own.  The 3 indexex ($DJI, $SPY,$QQQ)  are still  - 4%  to  - 5%  below the down sloping 50 day sma(simple moving average).  Its best to look at only those stocks that are close to the 50 day sma, exhibiting a strong upward trending  RS line  and the 50 day sma line is not as pronounced downward sloping as the indexes are.  These are the ones that are leading the market now.

Mentoring  Service

Did your portfolio suffer a  -20%  decline prior to the Christmas day?

If it did than you need to start asking questions about what it is that you are doing wrong!  2018  was a bullish year if you had migrated to  CASH  after October 10th. 

 Make a  New Year's resolution to get it right. 

 Learn:

• How to find winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stocks Right?
• How to TIME the market?

I shall be opening up just a few slots for mentoring in 2019.  If you are committed to improving your performance in 2019 than   Schedule a  FREE  30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2019.  It's going to be a very challenging year.  2016  and  2017  were the easier markets to make the money.  The strategies that worked in easier markets will not work well in 2019.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com  

Happy Trading!

Amin

Happy  New  Year

"Cheers to a New Year and another chance for us to get it right"

By Oprah Winfrey (media executive)

Currently as of Friday Dec 28th, the leading Growth Stock Index  $QQQ  is  - 1.79%  year to date.  That's a far cry from the  + 31.36%  we experienced in 2017.  It would have been  - 8.39%  had we not had a surge of  + 6.60%  within the 2 days after the Christmas day.  It was a confirmed rally with trading volume almost twice the average daily volume.  Christmas week usually is a lighter volume week.  That's a good sign that the market may be righting itself after 8 weeks of stomach churning volatility in the market.  We had 2  "Follow Thru"  days - November 7th and November 28th that failed miserably.  The index was just not able to punch through the 200 day sma(simple moving average) and ended up plummeting below the 400 day sma.  We are not out of the woods yet.  We need for the institutions to continue to participate in the market like the way they did during the 2 days after Christmas day.  The index is still   8%  below the 50 day sma. 

Trade  Less  Trade Smart 

I picked up the above quote from the IBD(Investors Business Daily) publication of Dec 31st 2018.  Over the weekend I did some studies on the  $QQQ  in order to improve the results of my trading.  I came up with the system of just trading 6 times a year with  $QQQ  in 2018  stress free for a gain of  + 8.46%.  Its a system where you buy at open as soon as IBD declares a  "Follow Thru"  day.  The index has to be above the 50 day sma.  You get out as soon as it hits the 50 day sma.  Here are the details of those 6 trades.  I have indicated the entry and exit dates.  Profit or loss is in parenthesis.  You would have avoided the failed  "Follow Thru"  days of  Nov 7th  and  Nov 28th  since they were below the 50 day sma.

1. Jan 2nd - Feb 5th           (+1.04%)
2. Feb 14th - Mar 19th        (+ 1.80%)
3. April 11th - April 20th      (+ 2.68%)
4. May 4th - June 28th       (+ 2.34%)
5. July 9th - July 30th         (+ 0.66%)
6. August 7th - Sept 18th    (- 0.06%)

Beauty of this system is that you would be in the trade from 2 weeks to 8 weeks.  Its a passive system.  You mitigate the risk of earnings reversals that you get with the stocks.  Best of all ... YOU SLEEP PEACEFULLY

Mentoring  Service

Did your portfolio suffer a  -20%  decline prior to Christmas day?

If it did than you need to start asking questions about what it is that you are doing wrong!  2018  was a bullish year if you had migrated to  CASH  after October 10th.  Make a  New Year's resolution to get it right as per Oprah Winfrey's quote.  Learn:

• How to find winning Growth Stocks?
• How to Buy the Stocks Right?
• How to Plan your Trade for Profit, Loss and Time in the trade?
• How to Sell your Stock Right?
• How to TIME the market?
• 
  

I shall be opening up a very limited number of slots for mentoring in 2019  if you are committed to improving your performance in 2019.  Schedule a FREE 30 minutes of  "Discovery Call"   with us and see how best we can help you become a consistent and a profitable trader and an investor in 2019.  It's going to be a very challenging year.  2016  and  2017  were easier markets to make the money.  The strategies that worked in easier markets will not work well in 2019.  Don't pass up the opportunity of making a difference in your portfolio.  Start out the new year with a resolution to invest in your education.

Contact us at:

investorspotlight@gmail.com  

Have a Very Happy, Healthy and a Prosperous 2019

Amin

   

Merry  Christmas

This is the time of the year when we should give thanks for the abundance we have in our lives and share our times and joy with the people we love, admire, cherish and respect.  Sometimes we get busy with our lives in pursuit of our careers to create wealth and a healthy portfolio for our retirements.  All that is important.  However its not as important as the people in our daily lives that make our life easier and those that support and encourage us in our endeavors.  I am very appreciative of the carrier that delivers my local newspaper Tampa Bay Times along with IBD(Investors Business Daily) + Barrons magazine at 4 am in the rain and nasty weather, 2 lawn mowing guys that keep my yard clean and neat, the garbage man that never fails to pick up my garbage every week and the waiter that pours my coffee for me when I am at a restaurant.   

I would personally like to thank my followers that read my blog every week and share their comments with me.  It was a horrible week in the market last week with over  -8.4%  drop in the leading Growth Stock index  $QQQ.   I had received numerous phone calls, text messages and emails asking me for advice as to what to do with their stock holdings going forward.  I am not a financial advisor and everything I publish in my blogs and tweets that I post are for educational purposes only.  My blogs are very straight forward and I present data as it unfolds in the market.  One should have started scaling out of the market into  CASH  as of October 5th when the major indexes  $SPY  and  $QQQ   had plummeted down to the 50 day sma(simple moving average).  That is the system of investing that I have been teaching my students for the past several years.

Market  Outlook

My suggestion this week is for everyone to enjoy the holidays in which ever way that will bring joy to you and keep you healthy emotionally.  We are in the bear market right now.  Bear market of 2008,  $QQQ  had dropped by  -50%  from August to November (4 months).  We have already dropped  -21%  in the last 3 months.  Trading volume during the Christmas week tends to be light.  If you are already in  CASH  than just let the market come to you.  Eventually all this  "Distribution"  from heavy selling will cease.  We will have a  "Follow Thru"  day  and the resumption of the uptrend in the market.  Have patience.  This is not the time to be taking any position in the Growth Stocks.  There is a lot of technical damage done to most stocks.

In my talks to the local investors groups in my area and to the students that I mentor, I often say that that these severe corrections are the kind of markets we all ought to be looking for.  These severe corrections in the market resets the bases once they undercut the previous bases.  During the "Follow Thru"  days after such severe corrections, leading stocks rise very rapidly.  It's not unusual to make a quick  +20%  or more within a week to 3 weeks in the leading stocks.  Conserve your trading capital as well emotional capital now in order to benefit from the opportunities to profit handsomely in the market.  

Mentoring  Program

Leading Growth Stock index  $QQQ  attained a performance of  +32%  in 2017.  This year it was  +12.73%  in the first 8 months from January to August .    We gave all that up and went into negative bear market territory  -21%  within the last 10 weeks.   Are you getting frustrated that you have been left behind and not fully able to capture the market rally we had in the first 8 months of this year?  Did you give up all of the gains made this year and slid your portfolio into negative territory?  No one should allow themselves to be in this situation ever.  Learn to  TIME  the market for proper entry as well as exit.  It can be learnt.  It requires a commitment and a resolve on your part to make this change.      

Schedule a 30 minutes of  FREE  "Discovery Call"  with us.  I will try to get you on board if you are committed to learning our system to Out Perform the Market.


Happy Trading!

Amin

  

Take  a  Vacation

I took several days off this week and headed out to Disney Resorts for some fun and relaxation with the family.  I wasn't too concerned about the market.  It's not going to go gangbusters without me.  I had already migrated to CASH gradually as of October 5th.  That has been my consistent message for the last several weeks in my blog posts.  The only thing to do now is just prepare a good Stock Watch List and exercise it when the market conditions improve.

Market has been very ugly since October 5th.  That's is the day when the  $SPY(proxy for general market performance)  as well as the  $QQQ(proxy for growth stock performance)  sliced down the 50 day sma(moving average).  We have lost all the gains that we made this year and more.  Lessons learnt is to pay a very close attention to the 50 day sma and the  "Market Pulse"  that's mentioned by the IBD(Investors Business Daily).  The tone of the market had changed by October 10th when the IBD indicated the change in the  "Market Pulse"  to  "Market in Correction".  That's is a signal to tell the retail investors to start migrating to CASH  and preserve the portfolio from eroding any further.  At my IBD Meetup group on October 9th I had alerted to the members the seriousness of the train wreck we were facing.  By the following day, the  $SPY  as well as the  $QQQ  had both sliced down to the 200 day sma.  

Ouch!  Ouch!  Ouch!

Migrating to  CASH  gradually from October 5th to the 9th  would have allowed you to mitigate losses from the current loss of -13.5%  in  $QQQ  to only  -3%  from the all time highs achieved on Oct 1st.  This requires the discipline and following the IBD rules without questions asked.  Hoping and wishing for the market to come back is futile.  It erodes your portfolio and at worst it shakes up your confidence.  Erosion of your emotional capital does a real damage to your ego and it stunts you from making a commitment during a  "Follow Thru"  day.  The last 2  "Follow Thru"  days have fizzled but when they actually do materialize, you get some real huge winners within a week to 3 weeks.  Preserving capital is the key to spicing up your portfolio.  

Plan  of  Action

In the plains of Serengeti, you will find two male elephants fighting during the mating season.  You will hear all the grunts and clashing of tusks between the males.  After a fierce fight, some small trees will get knocked down and there will be a dust storm from all their macho shuffling.  Grass and other vegetation gets trampled on and destroyed.  That is exactly what is happening in the market right now with the hedge funds.  On any given day, the  $SPY and  $QQQ  will move  2%  from highs to the lows.  That sort of volatility will destroy your portfolio.  Its best to stay out of the harms way while the hedge funds that are the titans are slugging it out.  Retail investors will get trampled on in the current environment.  This is the time to just stay out of the market.  It is a good time to polish up on your trading skills and read some good books on investing and trading Growth Stocks.

Mentoring  Program

Would you like to learn:

• How to read the signals that the market gives you so as to avoid the market crash we had in 1987, 2000 and 2008/2009.  Learn how to avoid  -40%   to    -50%  loss of your portfolio during such a market crash.
• How to consistently Outperform the Market like I do?

Schedule a FREE 30 minutes of  "Discovery Call"  with us to see if you qualify for our program.

Contact us at:

investorspotlight@gmail.com

We have only 2 spots left.  You know your hedge funds and mutual funds are not going to protect your portfolio during a severe market correction of  - 10%  to  - 20%  that we are dealing with right now.

  

  Invest in yourself and take control of your financial future.  Don't procrastinate and contact us.  I will open spots for just 2 dedicated investors that want to learn and profit in the market.

Happy Trading!

Amin