Investor Spotlight

Sunday, April 2, 2017

Results of Stocks on My Watch List

Tuesday March 21st we suffered a "Distribution Day". All 3 major indexes that I monitor - $DJI, $QQQ and $SPY - had sliced down past the 30 day sma (simple moving average) and were heading towards the 50 day sma. The condition of the market had changed to "Market Under Pressure". This is a cautionary signal to retail traders to hold off taking any position in a stock and initiate trailing stops to lock in the profits. This is also the time to scrutinize Growth Stocks and identify the ones that may become the next leaders when the market status improves and goes back to "Confirmed Uptrend". Seasoned traders however continue to stay engaged with the market and not get despondent. I published a list of stocks on Tuesday March 28 that were holding up while the market was correcting. They were all trading along the 8 day ema (exponential moving average) while the 3 indexes were already below the 30 day sma. The following stocks were showing strength because the institutions were supporting it and holding onto it while the general market was breaking down.

$AMAT ... -0.18%
$VMW ... +0.45%
$IDXX ... +0.57%
$LRCX ... +0.70%
$CRUS ...+1.04%
$ULTA ... +1.31%
$ATVI ... +1.50%
$PCLN ... +1.53%
$MOMO ... +2.22%
$AEIS ... +3.18%
$VEEV ... +3.45%
$CGNX ... +4.41%

Some of these stocks are extended and have surpassed their ideal buy point. $AMAT has already made +25% from its ideal buy point of $31.75 since Nov 18th. It is however consolidating for the past 2 weeks and still trending along an established uptrend channel since the follow thru day on Nov 9th. Average gain for these 12 stocks - including the $AMAT with a slight loss - was +1.68% for the week. That is +87.36% annualized return.

Mentoring Service

If you would like to learn:

"How I Identify Winning Stocks and How I Execute and Monitor Trades with Trailing Stops"