Investor Spotlight

Sunday, December 30, 2018

Happy New Year

"Cheers to a New Year and another chance for us to get it right"

By Oprah Winfrey (media executive)

Currently as of Friday Dec 28th, the leading Growth Stock Index $QQQ is - 1.79% year to date. That's a far cry from the + 31.36% we experienced in 2017. It would have been - 8.39% had we not had a surge of + 6.60% within the 2 days after the Christmas day. It was a confirmed rally with trading volume almost twice the average daily volume. Christmas week usually is a lighter volume week. That's a good sign that the market may be righting itself after 8 weeks of stomach churning volatility in the market. We had 2 "Follow Thru" days - November 7th and November 28th that failed miserably. The index was just not able to punch through the 200 day sma(simple moving average) and ended up plummeting below the 400 day sma. We are not out of the woods yet. We need for the institutions to continue to participate in the market like the way they did during the 2 days after Christmas day. The index is still 8% below the 50 day sma.

Trade Less Trade Smart

I picked up the above quote from the IBD(Investors Business Daily) publication of Dec 31st 2018. Over the weekend I did some studies on the $QQQ in order to improve the results of my trading. I came up with the system of just trading 6 times a year with $QQQ in 2018 stress free for a gain of + 8.46%. Its a system where you buy at open as soon as IBD declares a "Follow Thru" day. The index has to be above the 50 day sma. You get out as soon as it hits the 50 day sma. Here are the details of those 6 trades. I have indicated the entry and exit dates. Profit or loss is in parenthesis. You would have avoided the failed "Follow Thru" days of Nov 7th and Nov 28th since they were below the 50 day sma.

Jan 2nd - Feb 5th (+1.04%)
Feb 14th - Mar 19th (+ 1.80%)
April 11th - April 20th (+ 2.68%)
May 4th - June 28th (+ 2.34%)
July 9th - July 30th (+ 0.66%)
August 7th - Sept 18th (- 0.06%)

Beauty of this system is that you would be in the trade from 2 weeks to 8 weeks. Its a passive system. You mitigate the risk of earnings reversals that you get with the stocks. Best of all ... YOU SLEEP PEACEFULLY

Mentoring Service

Did your portfolio suffer a -20% decline prior to Christmas day?

If it did than you need to start asking questions about what it is that you are doing wrong! 2018 was a bullish year if you had migrated to CASH after October 10th. Make a New Year's resolution to get it right as per Oprah Winfrey's quote. Learn:

How to find 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 2019 if you are committed to improving your performance in 2019. 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 2019. It's going to be a very challenging year. 2016 and 2017 were easier markets to make the money. The strategies that worked in easier markets will not work well in 2019. 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.