Investor Spotlight

DOW Drops 1,000 Points !

Do you have a plan in place if the major indexes correct in the next 2 weeks? This may seem to be a hypothetical scenario but in actuality it is not. In 2017 the market had corrected less than -3% and a mild correction of -3% to -5% is quite normal in a bullish market. When I analyse the charts of the $DJI, it appears that the index trades at the upper bollinger bands from 9 to 14 days before it begins to consolidate. $DJI is currently hovering for 10 days at the upper bollinger bands and it could snap back to the mean. Currently We have only 2 distribution days between the $SPY and the $NADAQ. There will have to be an elevated count of distribution days before panic begins to set in the market.

On Wednesday Jan 3rd, I had alerted my readers and followers to seek portfolio protection with the use of option trades on $VIX. Some of you followed up on it and now have profited handsomely. $VIX closed at $9.15 that day and now after 3 weeks, it is up a whopping +23%. WOW! WOW! WOW! This is highly unusual because $DJI is also +5.47% in the same period. How often do you get an opportunity to profit in the index as well as the $VIX ?

Performance of Most Profitable Stocks of 2017

Mr. Jesse Livermoore - the greatest stock trader of our times - did the post mortem every year of all the trades that he had done that year. He would spend the entire weekend inside the bank vault, going through all his notes on every trade that he had done. Why did he do that? One of the main reasons was, he wanted to find out what trades he made mistakes and lost money and which trades he made that made profits for him. All he wanted to do was to continue doing what worked for him and stop doing things that caused him losses. He came up with what we now call "Model Stocks". These are the stocks that made money and it is a good idea to study them and their patterns. Next time you see a similar pattern develop in a stock, you may have found a candidate that will become a super stock.

At the beginning of this year, I highlighted 26 stocks that I considered to be the Model Stocks of 2017. Below I have highlighted the performance of the 3 indexex as well as the 26 Model Stocks. Since I am a Growth Stock investor, I want my stocks to perform 2 times better than the performance of the $SPY.

Indexex:

$SPY ... +5.08%
$DJI ... +5.47%
$QQQ ... +6.79%

28 Model Stocks:

$KEM +32.60%
$IPGP +22.85%
$YY +22.24%
$ALGN +21.27%
$NVDA +18.92%
$OLED +17.96%
$ANET +15.04%
$NFLX +14.85%
$PYPL +13.88%
$CGNX +13.15%
$LRCX +12.75%
$AMAT +12.28%
$CTRL +10.25%
$MA +10.22%
$VMW +8.55%
$CBOE +7.46%
$BABA +6.74%
$VEEV +5.88%
$HDB +5.66%
$NVR +5.47%
$RHT +4.86%
$AVGO +3.69%
$THO +3.13%
$PRAH +2.67%
$GRUB -2.47%
$NTES -5.66%

Average performance of the 26 Model Stocks - including the 2 losing stocks - was a whopping +10.93% since the beginning of the year. That is more than 2 times the performance of the market as measured by the $SPY at +5.08%. I have traded a large percentage of these stocks in 2017 and I have made detailed notations on my stock charts and trade diary. This is something that every trader and investor ought to do. Its time consuming but its the discipline that will make you a better and a profitable trader. This is one of the things that Mr Jesse Livermore did and its a good habit to follow.

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 +5.08% with $SPY in just 13 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.