Market  Conditions 

Conditions for Growth Stock investors has improved dramatically over the last 2 weeks.  $NASDAQ  had a  "Follow Thru"  day on Friday March 26th and  $QQQ  went on to attain a gain of over  +6.51%  since that day in 2 weeks.  It rose up from below the 50 day sma(simple moving average) and is now within a spitting distance to all time high that was achieved over 7 weeks ago on Feb 16th.  In my post over the weekend on March 28th, I had alerted the readers to stay focused on the semi conductors, home furnishing and some of the retail names in the retail segments associated with the home building segments of our economy.  That theme has played out very well in the last 2 weeks.  If you had taken some stock position in the stock names that were highlighted in my blog post the last 3 weekends, some of those stocks provided us with the opportunity to add to the existing position and concentrate portfolio into the leading Growth Stocks. 

Mr. Stanley Druckenmiller a very well known and respected money manager, Chairman and CEO of Duquesne Family Office said:

"I strongly believe the only way to make long-term returns in our business that are superior is by being a pig.  I think diversification and all the stuff they're teaching at business school today is probably the most misguided concept anywhere.  And if you look at all the great investors ... they tend to make very, very concentrated bets.  They see something, they bet it, and they bet the ranch on it.  And that's kind of the way my philosophy evolved ... if you really see it, put all your eggs in one basket and then watch the basket very carefully". 

Here is a link of a clip of the remarks that Mr. Druckenmiller made during one of his interviews:

https://youtu.be/lLM5TwxFMCU  

Stock  Watch  List

I am a firm believer of concentrating portfolio to just a handful of names.  If one has a portfolio the size of $500,000 to $1 million, one needs to whittle it down to just a handful of stocks - perhaps 6 to 9 names only.  Anything more than that becomes very hard to manage effectively.  Focus on only those stocks that are making you outsize gains.  Get rid of the losing stocks or stocks that are lagging the performance of the leading Growth Stock Index  $QQQ.  Currently I am focused on Home furnishings, Home builders and construction, Finance and credit card payment processors and the Internet content group.

Stocks:

1. $ADS
2. $ATKR
3. $BBBY
4. $BLDR
5. $EVRI
6. $HOME
7. $HVT
8. $KIRK
9. $LOVE
10. $MHK
11. $PINS
12. $PYPL
13. $RH
14. $SNAP
15. $SQ
16. $TWTR
17. $WSM

We are starting out with the earnings season for the 1st quarter this week.  Be aware that earnings reports can present a risk of a stock gapping down and wiping away all the profits that you may have in a stock.  It's critical to weigh the risk associated with holding the entire stock position through the earnings cycle as well the possible benefits of the stock gapping up for further gains possibly.

Good luck trading this week.

Happy Trading!

Amin