$TTD  + 50%  in  7  Weeks

"It was never my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"

By Jesse Livermore (one of the Greatest Stock Trader of our time)

The  "Follow Thru"  day that we had on January 7th has been one of the most successful and profitable days in the last 5 months.  Many leading stocks started gaining strength and began moving up rapidly in the last 7 weeks.  $TTD was one of those stocks.  In order to make a sizable difference to your portfolio, one has to adhere to some very simple rules of trading Growth Stocks.  I have been highlighting some of those rules in my blog posts in the last 3 weekly blog posts.  Following are some of the very basic rules and concepts one should follow to attain the kind of gains achieved in trading  $TTD.  Those basic rules as mentioned in my previous blog posts were:

1. Yes ... You can TIME the Market (blog post Jan 13th)
2. Concentrate your portfolio to few stocks. (blog post Feb 3rd)
3. Buy High and Sell Higher (blog post Feb 10th)

How  $TTD  was  scaled  in  with  3  positions

• Jan 7th  "Follow Thru"  day initial small test position was initiated at  $119.91  at the market open.  Position quickly gained  +8%  within 7 trading days.  Stock was trading above the 50 day sma(simple moving average) while the  leading Growth index  $QQQ  was below the  200  day sma.  
• Jan 16th added a second position at  $131.35 at the market open.  Position quickly gained  +12.3%  within 15 more trading days.  Stock was now trading above the 20 day sma while the  $QQQ  was still hovering below the 200 day sma.  This stock was well supported by the institutions and leading the market.  First position was already  +23.6%.  
• Feb 7th, a third position was taken at  $145.40 at the market open.  Position quickly gained  +3.5%  within 9 days.  Original position of Jan 7th was already  +25.5%  by this time just a day before earnings.     
• All 3 positions were now held through earnings day on Feb 22nd.  There was plenty of profits attained in these positions to warrant that decision.  The stock had gapped up and attained  +20%  within days during the earnings in 2018 on Feb 11th, May 28th and August 10th.  Trading volume during these earnings report was  12  times the normal daily average trading volume and had invoked the  "8 week holding"  rule of IBD.
• Once again the stock delivered a  +29%  gain during the earnings on  Feb 22nd.  Trading volume was  6  times the normal daily average trading volume.  Once again this stock invoked  the  "8 week holding"  rule of IBD.  
• According to Mr. William J. O'Neil (Founder of Investors Business Daily), when a stock moves  +20%  from its buy point within 3 weeks, it should be held for 8 more weeks.  He found that the stock tends to attain a higher price due to institutional interest in the stock.  $TTD  is  +308%  in the last 12 months.

Currently all the 3 positions have attained  +50%  on an average in the last 7 weeks since the  "Follow Thru"  day of January 7th.  It required a lot of patience to select the right stocks out of the 18 stocks that I had mentioned in my blog post of January 13th.  They were finally concentrated with positions in just 6 stocks within 4 weeks.  One has to have the patience to sit tight and monitor the performance of the stocks.  Remove stocks that are not performing well and invest that money into the ones that are.  Scaling into the stock as the stock continues to perform well is the key to profiting with growth stocks.  That's how you make a significant difference in the growth of your portfolio.

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)

We had a very successful  "Follow Thru" day on January 7th.  Market continues to grind higher for the last 9 weeks.  $QQQ  is still butting its head against the 200 day sma that is acting as a strong resistance.  One should be harvesting profits if the stock has attained  +20%  or more.  Have the $$$ available for other Growth Stocks that are breaking out.

Our schedule for March is full but if you are really interested in enrolling into our mentoring Program, I will be glad to open up some slots for you.  

   

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

$CYBR  +34%  Within  6  Weeks

Mr. William J. O'Neil (Founder of Investors Business Daily) has identified several key rules on Growth Stock Investing in his book:

"How to Make Money in Stocks" (4th Edition).

In the last several weeks, I have highlighted some of those rules in my post.  These rules and concepts may appear to be counter intuitive at first.  After having followed the IBD(Investors Business Daily) system of Growth Stock investing and staying disciplined with my routine of scanning 150 to 200 stocks every weekend, I can assure my readers that the system does work.  I have identified  $CYBR  stock as a case study for you to follow and grasp these basic concepts of: 

1. Always buy something on a  "Follow Thru"  day.
2. Buy High and Sell Higher.
3. Do not diversify but instead concentrate your portfolio to just a few winning stocks.
4. Observe the  "8 Week Hold Rule"   

How  $CYBR  Trade  Unfolded

• We had a "Follow Thru" day on January 7th.  Initial position was initiated at market open for $69.72.  Stock quickly made +14% within 6 trading sessions.
• Second position was initiated on January 16th at market open for $80.75.  It quickly made +7% before the earnings announcement on February 14th.  
• Both the positions were +14.75% on average the day before the earnings announcement.  There was plenty of cushion in both these positions to hold through the earnings announcements.
• Last 3 earnings in May, August and November, the stock was propelled higher by +10% in trading volume that was 2 to 6 times the average daily volume.  It gapped up every time too.  This was a signal left by the institutions that they were accumulating shares of this stock. 
• Earnings was reported on February 14th and the stock gapped up by +20%.  Volume was 7 times the daily average trading volume that day.  Stock has been trading above the 8 day ema(exponential moving average) ever since the  "Follow Thru" day.  It's been extended now and one can expect for it to consolidate for a few days.
• Currently, both the positions are averaging +34% gain in the last 6 weeks.  Since the stock gapped up +20% during earnings with very strong institutional demand, it's likely to go even higher.  It's worth holding onto a partial position for more gains.

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)

2019 will be a very challenging year in the market.  We have  had a very successful "Follow Thru" day.  Market continues to grind higher for the last 8 weeks.  $QQQ  is still butting its head against the 200 day sma that is acting as a strong resistance now.  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.  On the flip side, we could be heading to the all time highs of September 2018.   

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

Buy  High  and  Sell  Higher

Its counter intuitive when anyone suggests that one ought to adapt the thinking of:

Buy High and Sell Higher

We are always looking for a deal when buying a house or a car or clothes and furniture.  Everyone loves a good sale and a bargain.  We have been accustomed to thinking that one should  "Buy Low and Sell High".  Growth Stock investing and trading however requires for one to think a bit differently.  It took me a while to fully understand this concept when I was first introduced to IBD(Investors Business Daily) very early in my stock trading career.  Now it seems clear as a day to me after trading all these years and analyzing 150 to 250 stock charts every week for years. 

In my blog post last week, I had suggested that one ought to concentrate the portfolio to just a few stocks and not to diversify.  There were originally 18 leading stocks identified during the  "Follow Thru"  day of January 7th (blog post of January 13th).  By Feb 1st, lagging stocks were removed and position concentrated into the 6 leading stocks (blog post of February 3rd).  They were outperforming the leading growth stock index  $QQQ  by 2.42 times within 4 weeks of a very successful  "Follow Thru"   day.  Here are the results of those 6 stocks for the last 5 weeks.  I have indicated in parenthesis next to the stock symbol, the price of the stock on Feb 9th 2018.  I have also indicated the higher price of the stock in parenthesis next to it when the stock was bought at a higher price on Jan 7th.  Current price of the stock is in parenthesis next to the  %  return of the stock in the last 5 weeks.  

1. $BEAT (31.65) (58.05)    ...  +27.44%  (73.98)
2. $CYBR (44.05) (69.82)   ...  +27.43%  (88.97)
3. $ALRM (36.18) (51.42)   ...  +26.08%  (64.83)  
4. $VEEV (55.45) (91.59)    ...  +25.79%  (115.21) 
5. $TTD   (42.80) (119.92)   ...  +21.90%  (146.18)
6. $MEDP (36.07) (53.12)    ... +20.61%  (64.07)
7. $QQQ (156.10) (156.54) ...  + 7.68%   (168.56) Leading Growth Stock Index

Average performance for 6 stocks  +24.88% (5 weeks)

Performance of Leading Growth Stock Index  $QQQ  +7.68% (5 weeks)

Buying High and Selling Higher and concentrating the portfolio to 6 leading stocks resulted in outperforming the leading Growth Stock Index  $QQQ  by  3.24  times in the last 5 weeks.

Happy Trading!

Amin

Concentrate  Your  Portfolio  to  Few  Stocks

Conventional wisdom suggests that one should diversify their stock portfolio.  That's what most financial advisors recommend to investors.  According to IBD (Investors Business Daily) methodology, that is a sure way to get a mediocre performance.  If you want to Out Perform the Market by investing and trading the Growth Stocks, you must identify the leaders early on and get rid of the laggards.  Utilize that money from the laggards to concentrate your position into the leading stocks with a second position instead.  Diversifying in actuality is increasing the risk by being exposed to many stocks.  It's better to concentrate your portfolio to the few leading stocks that have proved their worth by leading the market.

We had a  "Follow Thru"  day identified when the market closed on Friday January 4th.  That's the signal to retail investors to start taking a small trial testing position on leading stocks.  Several small positions should have been initiated on Monday January 7th.  Stocks have been known to just take off on a very successful  "Follow Thru"  day.  It's not unusual for the leading stocks to quickly gain  +15%  to  +20%  within 3 weeks.  There were 18 stocks that I had mentioned in my blog post on January 13th.  Initial test positions were taken at market open on Monday January 7th.  By January 16th, 6 stocks were leading the pack and a second position was initiated into those leading stocks on that day.  Here is the performance of those 6 stocks in the last 4 weeks as well as the performance of the leading Growth Stock Index  $QQQ:

1. $CYBR   ... +26.73%
2. $BEAT    ... +24.62%
3. $MEDP   ... +23.74%
4. $VEEV    ... +23.68%
5. $ALRM    ... +21.21%
6. $TTD       ... +21.13%
7. $QQQ       ... +9.74%

Average performance for 6 stocks:  +23.52% (4 weeks)

Average performance for 6 stocks:  + 9.23% (2 weeks 3 days for second position)

Average performance for 6 stocks:  +16.38% (both 1st and 2nd positions combined)

Average performance for 18 stocks: +13.49% (4 weeks)

Concentrating the portfolio to just 6 leading stocks and getting rid of the laggards resulted in outperforming the leading Growth Stock index  $QQQ  by  2.42 times.  It also outperformed the portfolio of initial 18 stocks by  1.74 times.

Happy Trading!

Amin

$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