Investor Spotlight

Market Conditions

Market continues to be in a bullish mode. If you are not fully invested in the market than you are missing out on profiting from it. I still hear traders expressing opinions that the market is topping out and climaxing. I analyse the market every weekend and the data reflects that we continue to get higher highs and higher lows on the major indexes. June through September are traditionally the worst months of the year. Looking at the history over the past 50 years, $SPY (a barometer for the general market) has delivered -0.03%. This year however, it was +4.06% This trend has continued for the month of October as well. The performance of the major indexes for October and the leading Technology Sector is as follows:

$SPY ... +2.36%
$DJI ... +4.35%
$QQQ ... +4.61%
$XLK ... +7.43%

In order to outperform the general market one must identify the leading stocks in the leading sector. One must take a position in these stocks by timimg the market. YES ... You can time the market. According to Mr William J. O'Neil (Founder of Investors Business Daily), he suggests that "One must buy something on a Follow Thru Day". We had a confirmation signal in mid May that gave us a signal to be involved in the market regardless of what the historical data suggested that it wasn't a good time to get in the market. We had a similar signal on Feb 16th and again on July 1st and Nov 8th.

Performance of My 21 Stocks

Currently I am 90% invested in the market. We are heading into the best 2 months of the year. Most of the S&P 500 companies have reported their earnings and we are heading into the tail end of the 3rd quarter earnings season. This is the time to close out the position on the laggards and harvest profits in stocks that have attained +15% or more in profits. One must have some cash available right now to either add to the position that are profitable and trending along the 8 day ema (exponential moving average) or to invest in a new position that is approaching its buy area. Here are the results:

$LMT ... + 1.64% (8/29)
$RTN ... + 2.05% (8/29)
$FOXF ... + 4.62% (8/25)
$MNST ... + 4.85% (8/28)
$PAYC ... + 7.05% (9/18)
$MRCY ... + 9.06% (8/28)
$CRM ... + 10.44% (8/28)
$MA ... + 12.00% (9/1)
$CI ... + 12.48% (8/30)
$AMAT ...+ 15.67% (9/28)
$CTRL ...+ 16.45% (9/25)
$CDNS ...+ 17.07% (8/29)
$ASML ...+ 17.94% (9/1)
$CGNX ...+ 18.86% (9/22)
$PYPL ... + 19.73% (8/31)
$LRCX ... + 21.10% (9/25)
$YY ... + 21.49% (9/5)
$OLED ... + 22.56% (9/6)
$VMW ... + 23.17% (8/18)
$IPGP ... + 25.51% (8/31)
$ALGN ...+ 39.11% (8/28)

Average gain for these stocks is +15.37%. I have indicated in parenthesis the date that the position was initiated. Most of these stocks have been held for 5 to 10 weeks.

Mentoring Program

Question you should all be asking your hedge fund managers and mutual funds that you are invested in is:

1. Has your portfolio performed as well as mine and if not why not?
2. Did your portfolio outperform the market by twice as much during the June to September period?

You all know the answer to that. Take control of your portfolio and learn to invest yourself to outperform the market. $QQQ the leading index has already performed +33% in the last 12 months. My 21 stocks performed +15.37% (80% annualized) in less than 10 weeks.

Schedule a FREE 30 minutes of "Discovery Call" with us to see how best our individualized program can make you a profitable investor. Just a few spots are left for new students. Don't procrastinate and be left behind. What are you waiting for? Don't be left behind while the market continues to move forward.

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