Investor Spotlight

$DJI Leads $SPY

January of this year, the stock market came out of the gate in full force. Few believed that we were going through a seismic shift in the US stock market. $DJI is composed of very old and mature companies. They just don't grow as fast as the Growth Stocks do that are in the $NASDAQ. $DJI index however, outperformed the $SPY (used as a proxy to measure the US stock market performance) in the 23 months since mid February of 2016. As a matter of fact, it was just shy of the leading index $QQQ. Volume in trading also has been twice as much daily in the $DJI as of Dec of 2016. Institutions are obviously taking huge positions in the $DJI components. It will be worthwhile monitoring the the Industrial Sector because that is where the new groups of leading stocks might emerge in 2018.

Stellar January

Every trader that I have talked to this month, seem to be in a good mood because the market is rewarding even the worst ones amongst us. Best traders always measure their performance against the major indexes. Here are the results of the 3 major indexes and the 9 major sectors.

Indexes:

$SPY ... +7.39%
$DJI ... +7.68%
$QQQ ... +9.74%

9 Major Sectors:

$XLV ... +10.72% (Health Care)
$XLY ... +10.45% (Consumer Discretionary)
$XLK ... + 8.19% (Technology Sector)
$XLF ... + 8.09% (Financial Sector)
$XLE ... + 7.27% (Energy Sector)
$XLI ... + 6.59% (Industrial Sector)
$XLB ... + 5.88% (Materials Sector)
$XLP ... + 3.20% (Consumer Staples)
$XLU ... - 3.10% (Utilities Sector)

Portfolio Management

Diversifying your portfolio is a 'Flawed Strategy'. As a Growth Stock investor, one must consistently outperform the leading index. Any stock that is not meeting that performance standard is considered a 'laggard'. You only want the 'Leading Stocks' in your portfolio. Instead of diversifying your portfolio, what one must do is get rid of the laggards from the portfolio and concentrate the position in the leading stocks instead.

Here are results of the Stocks currently held in My portfolio. I have indicated in parenthesis, the price and the date the position was initiated. Leading stocks are mentioned first and the laggards are the ones that have performed less than the leading index $QQQ performance of + 9.74% in 4 weeks of January (18 trading days only).

Leading Stocks:

$PYPL ... +39.40% ($61.30 August 31st)
$PYPL ... +22.07% ($70.00 Oct 24th Added as a Second position)
$MA ... +27.8% (133.30 Sept 1st)
$MA ... +12.8% ($151.00 Dec 21st Added as a Second position)
$YY ... +20.6% ($116.00 Jan 2nd)
$YY ... +15.2% ($121.46 Jan 3rd Added as a Second position)
$ADBE ... +13.70% ($177.70 Jan 3rd)
$SIVB ... +13.60% ($227.04 Dec 1st)
$MSFT ...+13.67% ($86.20 Dec 20th)
$RHT ... +11.30% ($121.50 Nov 7th)

Laggards:

$GRUB ... +9.30% ($70.00 Dec 13th)
$CBOE ... +7.90% ($127.00 Jan 8th)
$IPGP ... +7.18% ($242.34 Jan 8th)
$ALGN ... +6.60% ($266.41 Jan 19th)
$TEAM ... +5.80% ($50.88 Jan 4th)

Mentoring Program

Did your portfolio increase by +40% to +50% in 2017?

If it did not than you need to start asking questions about what it is that you are doing wrong! 2017 was an unprecedented bullish year and we have already started 2018 +7.39% (+96% annualized) with $SPY in just 18 trading days. You need to make a commitment this year to learn:

How to find the Winning Growth Stocks?
How to Buy the Stocks Right?
How to Plan your Trade for Profit, Loss and Time in the trade?
How to Sell your Stock Right?
How to TIME the market?

I shall be opening up a very limited number of slots for mentoring in February. Schedule a FREE 30 minutes of "Discovery Call" with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018. Don't pass up the opportunity of making a difference in your portfolio. Start out the new year with a resolution to invest in your education.