Investor Spotlight

Market Under Pressure

You all might be asking yourself the question:

"What happened to the Follow Thru day we had on Valentines Day?"

The answer is very simple if you base your decisions only on the data that the market presents. The data shows that we had a cluster of 6 distribution days last week between the $SPY and the $NASDAQ. Institutions were disposing of their stock holdings and harvesting their profits accumulated during the market rally for 11 market sessions starting Feb 9th. There was heavier volume than average daily volume during these distribution days. This is the week where we all have to start defensive selling of our stock positions to be in tune with the market. 75% of the stocks will follow the trend and what we are experiencing is a counter trend that is normally seen in a general bullish trend. If the stocks you own are at a -5% or -6% loss from when u initially purchased it, you ought to consider selling them to protect your portfolio.

Performance of My 14 Stocks on Watch List Compared to $SPY

Here are the results of the 3 major indexes performance as well as the leading Technology Sector ($XLK) etf last week when the market tone changed to "Market Under Pressure". I have also listed the price gain or loss for each of the 14 stocks that were on My Watch List last week with total gain or loss for all those stocks listed under the totals:

Indexes:

$QQQ ... - 1.30%
$SPY ... - 2.05%
$DJI ... - 3.05%
$XLK ... -0.88%

Watch List Stocks:

$ABBV -3.71
$ADBE +0.05
$AMZN +0.25
$ATHM -3.85
$BOFI +0.03
$EBAY -0.73
$IBKR -1.41
$LPLA -2.02
$MSFT -1.01
$NFLX +15.12
$NOW +6.27
$PANW +11.23
$TSS -1.25
$WB -9.19

TOTAL ... +9.78 (+0.32%)

Conclusion:

This was a very strong watch list. This is why I spend my weekends looking over several hundred stocks, indexes n etf's to come up with what I consider to be the "Rock Stars" of the growth stocks. My stocks performed +0.32% (+16.64% annualized gains) during the week that the market took a tumble with a loss of -772 points on the $DJI for the week. These stocks are also all trading above the 21 day ema(exponential moving average) while the $SPY and $DJI are hovering at 100 day sma(simple moving average).

One should always compare the performance of any stocks that is on your watch list and the stocks that you own against the leading index and the leading sector etf's. The above 14 stocks were all technology related since that has been the leading sector this year. As a growth stock investor and a trader, one must select the leading stocks in the leading sector.

Mentoring Program

Were you stunned last week when the market corrected for 3 days with a drop of -3.05% (-772 points drop on the $DJI). Do you know what preventive actions you should take to mitigate losses to your portfolio? Did you have a strong watch list to select stocks to buy when the market indicated a "Follow Thru" day. If you are feeling sick to your stomach with the train wreck we had faced, than you need to make a commitment NOW to learn:

How to TIME the Market?
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?

I shall be opening up a very limited number of slots for mentoring in March. 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 procrastinate and pass up the opportunity of making a difference in your portfolio. Start out the new year with a resolution to invest in your education.