Investor Spotlight

Sunday, November 12, 2017

"Follow Thru" Day

Can you TIME the market?

ABSOLUTELY

We had a "Follow Thru" day on November 8th 2016 which is a signal that tells us that the new bull market has begun. This is the day when according to Mr. William J. O'Neil (founder of Investors Business Daily) one must start buying the leading high rated growth stocks. This is the day that the market status changed to a "Confirmed Uptrend". Its like a Green light to the retail investors to start deploying their cash into quality stocks. Highly rated stocks break out of their bases and they rise rapidly within days from their 50 day sma (simple moving averages) to 10 day sma.

Every bull market starts with a "Follow Thru" day. Not every "Follow Thru" day triggers a new bull market though. However, no bull market has occurred without a "Follow Thru" day. On Friday Sept 9th, we had a major "distribution day" when the 3 major indexes $SPY, $QQQ and $DJI traded below their 50 day sma. Market status changed to Market in Correction. This was the signal to go into CASH and to preserve the capital from eroding. Within 4 weeks, the market changed on Wednesday Nov 9th and those that knew how to TIME the market, were rewarded handsomely by outperforming the market.

Market Results

Its exactly a year since we entered the new bull market on Nov 8th 2016. Here are the results of the performance of the 3 major indexex as well as the performance of all the 9 major sectors of the US stock market:

Major Indexes

$SPY ... +20.81%
$DJI ... +28.50%
$QQQ ...+31.40%

Major Sectors

$XLK ... +34% (Technology Sector)
$XLF ... +32% (Financial Sector)
$XLB ... +24.08% (Materials Sector)
$XLI ... +23.70% (Industrial Sector)
$XLV ... +19.25% (Health Care Sector)
$XLY ... +16.49% (Consumer Discretionary Sector)
$XLU ... +13.20% (Utilities Sector)
$XLE ... +1.21% (Energy Sector)
$XLP ... +0.87% (Consumer Staples)

Technology was the leading sector for the last 12 months. 17 of the 21 stocks that I had highlighted in my post last week, were in the Technology Sector. As a retail investor of growth Stocks, one must identify the leading stocks in the leading sector to Out Perform the Market.

Mentoring Program

You have seen the results of all the trades and stocks that I have shared with you for the past year. I consistently Outperform the Market every month. Retail investor are much more nimble than the institutional investors like hedge funds or mutual funds. Retail investors that study the markets ought to do better than the institutional investors.

Would you like to learn:

How to TIME the market?
How to read the signals that the market gives you so you can mitigate losses?
How to identify leading Growth Stocks in the leading Sector?
How to create a Trade Plan for Loss Exit, Profit Exit and the Time in the Trade Exit?
How to enter into a stock position with a Low Risk?

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