Investor Spotlight

Sunday, December 3, 2017

Market Performance

Technology Sector which has been the leading sector this year, retraced on Wednesday Nov 22. $QQQ the leading index exhibited a "distribution day" in volume 2.5 times the normal average daily volume. Similar thing happened on June 9th. The only difference is that in June, $QQQ went into correction within 4 weeks and began to slide down below the 50 day sma (simple moving average). It took down the technology sector along with it. This time however, $QQQ index as well as the $XLK (Technology Sector), recovered the next day and stayed above the 21 day ema(exponential moving average). That is a healthy sign for the market. Quite a few of the leading technology stocks however were sold off by the institutions. That is a normal correction to be expected when stocks such as $YY(+61.11%), $IPGP(+42.06%) and $CTRL(+30.04%) were showing profits within 8 to 10 weeks.

Market Outlook

Currently we have a total of 5 "distribution days" with the $NASDAQ at 4 and $SPY with 1. Market is still in a "Confirmed Uptrend" according to IBD(Investors Business Daily). Performance of the 3 indexes and the 3 leading sectors for November is:

$QQQ ... +1.55%
$SPY ... +2.84%
$DJI ... +3.65%
$XLP ... +5.84% (Consumer Staples Sector)
$XLY ... +5.02% (Consumer Discretionary Sector)
$XLF ... +3.68% (Financial Sector)

What we are witnessing is a Sector Rotation in the market. Institutions have exited some of the leading Technology Stocks while building defensive dividend paying stock positions in the Consumer Staples. They have also started building positions in the Consumer Discretionary and Financial Sector as well.

My projections for the $DJI and $SPY (just a hair shy) that I highlighted in my post of Nov 26th were met. Market continues to exhibit a bullish trend. We are heading into December which is one of the best performing months of the year. My year end projections for the 3 indexes are:

$SPY ... 270
$QQQ ...160
$DJI ... 25,000

Stocks On My Watch List

$SIVB
$BGCP
$WLK
$ODFL
$AMTD
$ICE
$AMP
$MCO
$MCD
$NKE
$WMT

Mentoring Program

Would you like to learn:

How to "TIME" the market?
How to Identify the Leading Stocks in the Leading Sector?
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How to Manage your Stocks to "Out Perform the Market?"
How to Mitigate "RISK" with your stocks?

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