Investor Spotlight

Are We Heading For A Market Crash ?

I celebrated my birthday yesterday and as usual, I looked over a 100 stock charts and 50 etf's and major indexes. Why did I do that? There are several reasons for it that has motivated me to be disciplined to do this every weekend. Here are some of my reasons:

I had celebrated my birthday 30 years ago in 1987 and a week later the stock market crashed. My portfolio was down by -40% within a week. Ouch ! Ouch! Ouch! Never again will I be caught off guard and face this again. I have since than learnt to know what signs to look for that would signal a market crash. I saved my portfolio in 2000 and 2008/2009 market crash.
I study and analyse the market every Saturday and Sunday. Market is closed and there is no noise of the market to contend with. I don't want to nor do I care to hear the opinions and sentiments of the so called "GURUS" that appear on national media. I look at the data to drive my decisions about the market. It really doesn't matter what I think or what the stock market traditionally does in October.

Market conditions are very healthy right now. We have only 2 distribution days between the $NASDAQ and $SPY. If the distribution count starts piling up in a row, I would be concerned than. 1987 market crash began giving us warning shots across the bow in mid September. What the hell were my mutual fund managers doing than? They were not looking out for my interests. How is it that they did not see these warning signs? The famous 1929 stock market crash gave warning signals several days before and the greatest stock trader Mr. Jesse Livermore knew what signs to look for. He was thoroughly prepared to profit from the signals he knew and recognized. He made over $100 million profit by shorting the market that day.

Heading Out To Disney

I am taking a few days off to enjoy the "Food and Wine Festival" at Epcot Disney Theme Park in Orlando Florida. I will be totally engaged with the market while I am taking a mini vacation. I just finished adjusting my "Trailing Stops". This is something that every trader and investor ought to do with their stock positions. Lot of the stocks that I have featured in my blog post last 5 weeks have attained their profit targets. Some of them have not advanced as much and are retracing. This is a week one must be disciplined to adjust the trailing stops to lock in the profits in the trade and also to avoid the stock that is retracing and hitting loss targets. Don't ever let a small loss of -4% to -5% end up being a -10% to -20%

Mentoring Program

Retail traders should never have to suffer a -40% loss that I suffered during the 1987 mid October "Market Crash". I have since learnt that the hedge funds and mutual funds are not equipped to nor can they completely get out of the market during a crash. Its not like they can park their money in a checking account like we can.

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% during such a market crash.
How to consistently Outperform the Market like I do?

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