Why  I  Scan  for  GAP  ups

We are heading into the 3rd quarter earnings report with 10% of the $SPY components slated to come to the earnings confessional booth this week.  Stocks exhibit volatility and surprises during the earnings report.  Quite often, the leading stocks of high institutional quality will gap up in price and attain an all time high overnight.  Institutions like hedge funds, pension funds, mutual funds and other professional money mangers are the reason for these gap ups in price overnight.  They have the strength of $$$ power to propel these stocks higher.  Quite often some of the leading stocks will attain a gain of  +20%  or higher within days and start consolidating the gains for the next several days or weeks.  Most of the high flying stocks that we know of today - $FB, $GOOGL, $NFLX, $AAPL, $CMG, $BABA, $MSFT, $QCOM - started their initial move in a similar manner from their infacy period of new IPO (Initial Public Offering).

IBD (Investors Business Daily) has an  '8 Weeks Hold Rule'  for stocks that show strong institutional demand.  The rule suggests that if the stock attains a  +20%  gain or higher from its proper buy point in less than 3 weeks, one should hold it for 8 weeks and evaluate the stock at that point.  Mr. William J. O'Neil (founder of IBD) found that quite often such stocks continue to make higher gains after attaining the explosive gains of over  +20%  within a short period of time.  Demand from the institutions is so great that the stock gets propelled higher from the sheer size of the demand from the institutions.  Institutions often curb their enthusiasm for the stock after attaining high price so quickly just so as not to exhibit their intentions of wanting to acquire more of the stock.  

$CDLX   Story

Institutions quite often will take a position in several leading stocks in the same group.  It's their way of exploiting the profit potential that the leading stocks in a leading group (top 5 out of the 33 groups IBD has grouped the stocks in their data base) presents.  Retail investors that have learnt and acquired the skills of reading and deciphering the stock charts, can easily identify the intentions of the institutions by looking over the price and volume movements in a stock.  Following is a quick synopsis of How I view the stock chart of $CDLX - a new IPO - that is a leading growth stock.  It is amongst a company of very successful stocks such as $PCTY (+300%), $PAYC (+300%), $SHOP (+350%), $COUP (+400%) gains in the past 2 years.  $CDLX has gained  +494%  in the last 8 months since May 9th 2019.  

• Stock attained a resistance of $19.64 trading less than 200,000 shares daily on Mar 4th 2019.  It's considered a very thin stock at this time, trading less than $1 million (share price x volume shares traded daily).
• Stock breaks out from earnings report from $19.64 resistance point on May 10th in volume that was 6 times the daily average volume.  This is the first early sign of institutional interest in this stock.  It attained a gain of  +20%  within 4 weeks.  Stock chart exhibited a very bullish technical setup when the 10 day sma (simple moving average) and the 20 day sma crossed over the slower 50 day sma.
• July 3 rd, the stock is trading close to $30 with over 300,000 shares changing hands daily.  This is 9 times the daily dollar volume compared to just 4 months ago.  This is another confirmation of institutional interest in the stock.  It is still considered too thin a stock for retail growth stock investors that follow IBD principles.
• August 8th, the stock gaps up  +20%  from the earnings report and punches through the resistance at $30.38 in volume that is 4 times the average daily volume.  Stock is no longer considered thin.  The stock continues to move higher and gains  +20%  from the buy point of $30.48.  This invokes the  '8 Weeks Hold Rule'.  This stock should be held until mid October and reevaluated at that time.  
• November 12th, the stock once again gaps up  +43%  from the earnings report in volume that is 12 times the daily average trading volume.  This is a massive volume and clearly a sign of tremendous institutional demand for the limited number of shares available in the market.  It punches through the buy point of  $42.17 and once again invokes the  '8 Weeks Hold Rule'.  
• Stock begins to consolidate because the institutions are taking a little break and they try not bid up the stock too much.  10 day faster moving sma and the 20 day slower moving sma began moving in tandem for the last 3 weeks in December in a very tight and an orderly manner.  This is a very bullish technical signal for an additional entry in a stock.
• December 30th, a stock position was initiated at the market open for $64.88.  There are only less than 15 million shares available for this stock and institutions continue to exhibit the demand for this stock.  The stock once again gapped up +25%  on January 13th.  

Making  +25%  gain in a stock within 2 weeks was accomplished by stalking the stock that gaps up during earnings and patiently waiting for the stock to attain a volume strength. 

Mentoring  Program

Our  Mentoring Program  is  FULL  for the month of February.  If you are interested in learning our System and enrolling in our program, please contact us at:

investorspotlight@gmail.com

We will do all we can to get you on board if you are serious about learning our profitable and successful way of becoming a seasoned trader and an investor of Growth Stocks.  2019 was the 3rd year of our bullish trend that started in February of 2016.  2020 will be another profitable year.  4th year of the Presidential election year has a history of being a bullish year.  

Do not procrastinate

Take control of your portfolio

Contact us and don't be left behind

Happy Trading!

Amin 

My Bullish Sentiments expressed January 7th 2018 Blog Post

Bullish Beginning For 2018

December is one of the best performing months in the market and we usually have a rally during the last two weeks of December. That did not occur in 2017. The 3 major indexes - $SPY, QQQ and $DJI stalled and traded in a sideways pattern for the last 2 weeks of December. In my blog on December 3rd, I had highlighted my projections for where I thought the major indexes were heading to end the year. They fell a hair short however. While the nation was gripped with the cold front (it actually snowed in tropical Florida in Tallahassee last week), the market was fully heated and came roaring out of the gate as soon as the market opened on Tuesday morning. My year end projections were surpassed within 2 days of trading in the New Year. I was elated because all my stocks and option positions were roaring as well. I had a list of stocks on My Watch List that were breaking out as soon as the market opened on Tuesday morning. Its a good thing that I stayed disciplined and took the time over the holidays to firm up my watch list. I wrote a post immediately on Tuesday morning to alert my readers on 17 leading stocks that were breaking out.

Performance of My Leading Stocks

Here are the results of the performance of the 3 major indexes as well as the 17 stocks that I highlighted in my Tuesday blog.

Major indexes:
$DJI ... +2.33%
$SPY ... +2.46%
$QQQ ... +3.96%

My 17 Stocks:

$OLED ... +3.85% ( added to my position with 8 wk hold rule)
$YY ... +13.30% (added to my position with 8 wk hold rule)
$HFC ... +0.06% (added to my position with 8 wk hold rule)
$TEAM ... +13.95% (added to my position with 8 wk hold rule)
$HTHT ... +6.29%
$FIVE ... +9.12%
$THO ... +2.75%
$NVDA ...+11.32%
$NVR ... +1.68%
$KBH ... +4.54%
$LEN ... +6.85%
$DHI ... +2.78%
$VALE ...+7.03%
$NFLX ... +9.39%
$TREE ... +7.23%
$WLK ... +4.00%
$URI ... -0.31%

Average performance for the 17 stocks (including the one losing position) was +6.11%. That is 2.48 times better than the $SPY performance. Performance of the 4 stocks that I took an additional position on was +7.79%. That is 3.17 times better than the performance of the $SPY. Market has gotten off to a very good start for 2018 in just 4 days of trading instead of the 5 trading sessions during the normal week.

Mentoring Program

Did your portfolio increase by +40% to +50% in 2016?

If it did not than you need to start asking questions about what it is that you are doing wrong! 2016 was an unprecedented bullish year and we have already started 2018 with unprecedented +2.46% with $SPY in just 4 days. You had better 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 this month. 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.

Contact us at:

investorspotlight@gmail.com

Happy Trading!

Amin

Happy  New  Year  ...  2020

I took the last 3 weeks off and disengaged with social media and the markets.  It was my annual pilgrimage I take to analyse and review all my past trades and the notes I took with annotated charts of my trades for 2019.  This is something I learnt from reading the books on Jesse Livermore (the greatest stock trader of our times).  Every year he locked himself up in the vault of his bank with a cot to sleep on for the weekend to review all his trades he did for the year.  After reviewing his trades, he stuffed his pockets with all the CASH from his vault.  It was his way of spending some of his winnings in the stock market.

Doing a post mortem of all your trades is something that seasoned and disciplined traders and investors do every year.  It's a way to decipher without emotions, what trades worked for you and which trades you lost money on.  The idea is to polish up your skills and continue to do what trades worked for you.  It's a great way to learn from your mistakes.  The key is to keep doing what seems to work for you and mitigate losses by discontinuing what doesn't work for you.  The way to become profitable with trading and investing is to mitigate losses - first and foremost.  Keeping accurate notes of your trades is critical and something everyone should take the time to do it with pertinent details. 

2019 was a very profitable year in the market.  Last year at this time I was walking in my neighbourhood and wishing everyone I came across a  "Happy New Year".  I am passionate about the markets and I am always glad to discuss and share my market sentiments with anyone I engage with on conversations about the stock markets.  I walk in my neighbourhood everyday and most of them know that I deal with the stock markets.  They were all upset that the market had corrected almost 20%  in 2018 and they were just afraid to put any capital to work for them.  January 4th 2019 we had a  "Follow Thru"  day and I was preaching the IBD(Investors Business Daily) rule that Mr. William J O'Neil always mentioned:

Always buy Something on a  Follow Thru Day  

Unfortunately my sentiments were just brushed off by my neighbours.  They had a recency bias of the market crash of 2007/2008 that they had just witnessed.  They had their portfolios just take a hit of -60% at that time and were barely even by the beginning of early Dec 2018.  They just witnessed another hit of -20% by Christmas eve of 2018 and were expecting the sky to fall now.  This year I reminded them today when I once again was wishing them a  "Happy New Year"  that $SPY did +30.2% where as the leading growth stock index $QQQ that I monitor was +40.8% for 2019.  Unfortunately they told me that they had their monies invested in mutual funds and with professional money managers who once again underperformed the general markets as measured by the $SPY.  They all subscribe to my blog post.  I have consistently reflected my sentiments of the markets that the market is bullish and we have entered another cycle of bullish uptrend as of February of 2016.  

Some People Never Learn

Just for the record ... 

• $SPY   is +72.8% since Feb 2016
• $QQQ  is +118.6% since Feb 2016

2015 was a year of market consolidation.  All one heard in the media all year long on tv and print media by the self proclaimed financial GURUS was ... "Market is maxed out and due for a correction".  The stock and index charts were telling us that we were getting a  "Follow Thru"  day in mid February of 2016.  That was the time to actually start dipping your toes in the market.  Those that knew and took the time to learn to read the stock charts with volume and price action, have now doubled their portfolios in less than 4 years.  Bravo to those that followed the IBD style of investing in Growth Stocks. 

I am dedicating this wonderful piece of music that I was listening to yesterday.  It's from one of my favourite artist ... Jesse Cook.  I never miss his concert when he comes to town.  It's going to be at Capitol Theatre in Clearwater on Thursday January 23rd.  Enjoy the soothing music.

https://youtu.be/x8IN6XOWa4k

Happy Trading!

Amin

JESSE COOK "Into the Dark"

Do  Not  Diversify

Concentrate  your  Portfolio  instead

https://youtu.be/H3Q8a9imiFs

"Diversification is a protection against ignorance"

"We think diversification as practiced generally makes very little sense for anyone that knows what they are doing"

"We like to put a lot of money in stocks we strongly feel about"

By. Mr. Warren E. Buffett (CEO of Berkshire Hathaway)

There were 19 stocks that I had listed in my post of November 3rd (6 weeks ago) that were showing signs of institutional support.  Most of them have been consolidating and trending along the 10 day sma(simple moving average) since than.  In my post of last Sunday Dec 8th, I identified the ideal buy point for each of those stocks.  These were not recommendations.  I was pointing them out to share my expertise to help you practice with your virtual account.  These buy points are early entries for a small test position to identify true leading Growth Stocks that perform better than the leading Growth Stock index $QQQ.  10 of those 19 stocks triggered a buy order last week.  Here are the results of the performance of those 10 stocks as compared to $QQQ.

1. $ALGT +5.50%
2. $AMKR +6.14%
3. $IPHI    +7.02%
4. $MKSI  +1.49%
5. $ORLY  +0.11%
6. $ROCK  +0.15%
7. $TPX    +3.46%
8. $BLD   -0.98%
9. $OLED  -0.95%
10. $RNG   -1.10%
11. $QQQ  +1.02%

Professional money managers that run hedge funds, pension funds and mutual funds, often underperform the general market as measured by the performance of the $SPY.  Retail investors that concentrate their portfolio to a few leading growth stocks have a better chance of out performing the leading growth stock index $QQQ.

The top 3 stocks mentioned above did 6 times better on an average than the $QQQ.  If you owned these 10 stocks, you ought to close out the losing positions first and use the proceeds to accumulate more shares of the top winning stocks.  They have already proved their worth by massively Out Performing the Growth Index.  According to IBD(Investors Business Daily), if you have a portfolio of $250,000, you should have a portfolio of no more than 6 stocks to begin with.  The way to profit in the market is to concentrate your portfolio to just a few stocks.  You are reducing the risk by owning just a few stocks.  The more stocks you own, the more you are exposed to the risk of exposure to a wide range of stocks. 

Happy Trading!

Amin  

Stocks  Institutions  Have  Exhibited  n  Interest  In 

Here is a list of stocks that have either gapped up in price or the stock has risen 20% or more within 3 weeks from its ideal buy point.   They are currently trending along the 10 day sma(simple moving average) and consolidating the gains achieved since they broke out during the last earnings report.  These are the stocks that no one hears about on the daily chatter in the news media.  This is why it's best not to get your stock and trading ideas from watching CNBC, FOX, Bloomberg or Yahoo news.  They do not have your best financial interests at heart.


I had listed these stocks in my blog post of Nov 3rd (5 weeks ago).  I had mentioned in that blog post that I shall discuss some rules for ideal entry points and some basic rules to follow.  Please don't consider these as my recommendations.  It's meant to share my expertise and to enable you to be able to read the stock charts.  It's meant to highlight some basic IBD (Investors Business Daily) rules of investing and trading leading Growth Stocks.  I have indicated ideal entry points in parenthesis.  Stocks that rose more than 20% within 3 weeks of ideal buy point are highlighted in bold letters.  These should be held for atleast 8 weeks since these are the stocks that tend to move higher from institutional demand.  A second position ought to be considered for such stocks if they continue to trend along the 10 day sma.  That is a sign of institutional support.

1. $ALGT  (165.06)
2. $AMKR (12.05)
3. $ATKR  (39.0)
4. $BLD    (107)
5. $BRKR (48.41)
6. $CRUS (70.0)
7. $FTNT (100.0)
8. $IPHI   (69.50)
9. $LRCX (265.85)
10. $MKSI  (108.0)
11. $OLED (196.23)
12. $ORLY (442.15)
13. $QRVO (99.50)
14. $RNG   (165.85)
15. $SPXC (47.12)
16. $TPX   (84.38)
17. $UCTT (20.60)
18. $UFPI  (47.50)
19. $ROCK (52.50)

Please make a note :

• Average price of these 19 stocks currently is $115.24.  Institutions don't buy cheap stocks and neither should you as a retail investor.
• These stocks have risen in price from institutional buying power.  Observe the sky scrapper volume on the stock charts.  
• Notice that these stocks began their uptrend when the 10 day sma crossed over the 20 day sma in mid October.  
• The major indexes - $DJI, $SPY and $QQQ also simultaneously had their 10 day sma cross over the 20 day sma.  Stocks were in synch with the indexes and correlated to the uptrend market direction.
• Once the stock makes a surge in price with the support of the volume from the institutions, it consolidates before making the next move higher.  It forms a new base - either as a 3 or more weeks of tight and orderly price performance.  Sometimes it retraces a bit for a couple of weeks to shake out the weak holders.

Mentoring  Program

Currently the leading Growth Stock index  $QQQ  has done +33% year to date.  That's a phenomenal performance.  

1. If you are struggling at increasing the size of your portfolio by out performing the $QQQ, than let us help you acquire that knowledge.  
2. If you are not able to identify the right leading growth stocks or ideal entry points to initiate the stock position, don't despair.
3. If you are not quite sure how to develop a trade plan to exit the stock for loss or profit or how long to be in that stock, reach out to us and let us help you become profitable.

Contact us at:

investorspotlight@gmail.com

I will take just a few mentees on a first come first serve basis only.  Once those few spots are taken, I shall close out the current enrollment sessions.  Don't procrastinate.  You can always make money if you have lost being engaged in the market since February of 2016.  You can never make TIME.  Schedule a 30 mins of  FREE  "Discovery Call"  with us and investigate  How best We Can Help You Become Profitable at Investing and Trading.

Happy Trading !

Amin

  

Opportunity  of  a  Lifetime

"If window of opportunity appears, don't pull down the shades"

By Tom Peters (American writer on business management)

"Opportunities are like sunrises. If you wait too long, you miss them"

By William Arthur Ward (writer of inspirational maxims)

For the last couple of years we have been hearing in the media that this bull market is about to end.  It's been going on for 10 years now.  For someone who keeps feelings aside and who keenly reads the stock and indexes chart, one thing that stands out is that the market continues to grind higher.  Since mid February of 2016 when the new bull market started, $QQQ  is  +69%  in the last 33 months.  That works out to be  +2.09%  per month (25% annual return).  Currently  $QQQ  is  +33%  year to date and we are heading into the best month of the year.  It would not surprise me at all if 2019 ends up with  +40%  for  $QQQ.  Picture is worth a 1,000 words and stock and index charts tells you everything you need to know.  Opinions of the self proclaimed GURUS of the market and hedge fund managers who express their opinions means diddly squat.  Market never cares about anyone's opinion.


I had written a post on November 10th with a heading  "You SNOOZE ... you LOOSE".  In that post I had highlighted some of my reasons as to why we may be heading into a 17 to 19 year cycle of secular bull market that started in March of 2009.  Baby boomers were the drivers of the market from 1984 to 2000.  $SPY  had gained  +813%  when the baby boomers reached their peak earning years.  Subsequently the market corrected  -49.2%  in 2000 dot com bubble.  We now have over 100 million millenials who will be at their peak earning years in the next 12 to 15 years when they reach 54 years of age.  Demographics is an important component of the market that we often overlook.



For the last 6 weeks, all the 3 major indexes - $DJI, $SPY and $QQQ  are trending just above the 10 day sma(simple moving average) in a very orderly fashion without much of a hiccup.  Distribution count stands at just 3 for the $SPY and 3 for the $NASDAQ.  Market looks very healthy with the unemployment hovering below 3.6%.  New home sales report posted last Friday indicated the best 2 months in the last 12 years.  Inspite of the tariff wars with Europe, China, Mexico, Japan and Canada, US economy is humming along.  $SPY is  +25.3% year to date and the $NASDAQ is  +30.6%.


I hope you all had a wonderful Thanksgiving Holidays with the family and friends.  Living in Florida this happens to be the best times with cool crisp dry air and pleasant temps with 70's at daytime and 50's at night.  Thanksgiving weekend is the start of the festivities of the year end holidays.  I would like to wish everyone a joyous time for the next 4 weeks.  I am including a link for you to enjoy the hymn of:

  'O Holy Night'

By Kerrie Roberts

https://youtu.be/EDUg88d9Hbw

ENJOY

Happy Trading!

Amin