Market  is  Efficient

I know some of you react to every piece of news out there that can possibly affect the market on any given day.  You start getting nervous and start looking over your stock positions closely.  Its the very wrong thing to do to get your emotions all worked up.  Pretty soon you make decisions based on your emotions and neglect to look at the data.  Markets have all the facts and its all factored in.  We have tweeting Trump talking about tariffs since March of this year.  North Korea has been in the news for years and its nothing new.  European central banks had already mentioned in September of 2017 that they will start winding down the easy money policy.  None of this is a surprise for the markets.

Currently the market is still acting bullish and we have just 8 distribution days - only 2 of them are in the  $NASDAQ  and 6  are in the  $SPY.  Its important to look at the stock charts.  Look at the daily chart but also at the weekly charts.  It is a graphical expression of what the price and volume is on any given time period.  One day performance of the market doesn't really make a difference.  Its good to look at the weekly charts to accurately determine the performance of the stock.  It helps us assess the data and not close out our positions prematurely. 

Market  Performance 

Looking over the average performance of $SPY over the last 50 years, June delivers  +0.02%  on average.  Its a sleepy month usually.  This year however, its quite different.  For the first 2 weeks of June so far, the performance of the 3 major indexes is as follows:

1. $SPY     ... +1.29%
2. $DJI       ... +1.85%
3. $QQQ    ... +2.45%    

That is a stellar performance so far.  If you paid too much attention to the news, you would think that the market would derail and the follow thru day we had 5 weeks ago would start to fumble.  That did not happen. This is why one has to discipline themselves to look at the data and make decisions based on that.  There are no opinions or your personal bias in the picture.  I can gurantee you that the hedge funds have taken every piece of news into consideration before committing their money to accumulating shares of the company of their choice.  That is why we as retail investors take our lead from what the institutions are doing.  They account for over  75%  of the total volume in the market on any given day.  Stock charts gives you a graphical expression of what they are doing in the market. 

Stocks  to  Monitor

Institutions usually make a major dollar commitment when they start initiating a position in a stock.  It may take them several weeks and several hundred million dollars to accumulate the full position on a stock of their choice.  Following are some of those stocks that had a spike in volume during the last several weeks.  It takes a couple of weeks for the stock to move sideways and form a new base.  I have these stocks on My Watch List and I have identified the initial resistance point for each of those stocks in parenthesis as a guide.

1. $AAXN      (64.94)
2. $ABMD     (415.00)   
3. $BCOR     (37.75) 
4. $CRC       (33.96)
5. $FIVE       (100.97)
6. $INGN      (182.08)
7. $SHAK     (62.54)
8. $SIVB       (306.94) 
9. $TCMD    (52.23)
10. $THC       (37.25)
11. $TTD       (83.37)
12. $TTGT     (28.31)
13. $TWLO    (55.20)
14. $WWE     (60.51)
15. $ZTO       (21.70)

Mentoring  Program

Our schedule for mentoring new students is filling up fast for the summer months.  There are very limited number of slots available for July and August.  Market usually takes a breather during the summer months and its an ideal time to refine your trading skills.  Secure your spot now before those slots fill up.

Schedule a  FREE  30 minutes of  'Discovery Call'  with us and let us help you profit in the market.  Don't continue to lose money in the market and fail to out perform the market.  Let us show you how to look for Growth Stocks and how best to profit from it.

Happy Trading!

Amin