Investor Spotlight

Sunday, October 9, 2016

Be Cautiously Bullish

We are heading into the most bullish period in the stock market. Historically the market has returned on an average +14.6% from November thru April looking at the data from the last 50 years. October traditionally has been a very volatile month with major market corrections occurring during the month. We have also had follow thru days during this month where the market took off with gains of +11% to +12.23% within 5 to 12 weeks. You want to be prepared and engaged with the market to take advantage of such an opportunity. Lot of my followers and readers missed out on such an opportunity in:

2013 from Oct 8th thru Dec 31 for + 11% gain
2014 from Oct 16th thru Dec 5th for +11% gain
2015 from Sept 28th thru Nov 3rd for +12.23% gain

May thru September is when everyone should have been sharpening their trading skills. I had posted a blog on August 28th (They are archived and you can access them) on the subject of Virtual Trades Hopefully my followers have been following my lead and have learnt to prepare realistic Trade Plans for Loss, Profit and Time exits.

Market Outlook

Market is currently digesting the gains from the July 1st Follow Thru Day We do have an elevated distribution days count of 4 on the $NASDAQ and 7 on $SPY We are also heading into the 3rd quarter earnings season with $AA entering the confessional booth on Tuesday followed by the big banks on Friday. This will be a very volatile week since the entire $XLF (Financial) sector is under severe stress. The sector dropped -18% on Sept 16th and has stayed below the 200 day sma $XLK (Technology) is still leading the pack and that is where one should be looking for opportunities.

Results of My Virtual Trades for Last Two Weeks

I was off for a mini vacation to Disney with the family last week but I tweeted to my followers that I shall be posting the results on the 19 stocks that I did a Virtual Trade on two weeks ago. My Trade Plan was for +10% profit target, -4% for loss target and to be out of the position prior to earnings report as a time target. I had 9 positions for a total loss of -22.06% (Ouch! Ouch! Ouch!) I also had 10 positions for a total gain of +30.64% (yeah!) All 19 positions combined, I attained a profit of +8.58% in just 2 wks

Here are the results for each individual positions:

$GRUB -0.47%
$GIMO -3.34%
$PAYC -1.57%
$VEEV -4.0%
$ATVI -0.14%
$STOR -4.0%
$JACK -4.0%
$BGS -2.88%
$PKG -1.66%
$UBNT +1.20%
$PRAH +3.21%
$LITE +7.96%
$AMZN +5.04%
$MELI +1.59%
$ANET + 0.06%
$BABA +0.10%
$HQY +3.01%
$APC +8.40%
$WMB + 0.07%

Mentoring Services

If you would like to learn our process of identifying winning growth stocks, sign up for our mentoring services. we are planning on offering a ONE TIME special webinar for 90 minutes session on:

"How I scan for Growth Stocks and How I Create a Trade Plan"

It will be a very limited class size for this webinar. If you would like to reserve a spot, please contact us at: