Many of the leading stocks are getting clobbered. Marc Faber came out with the statement he believes the stock market will fall 40%!!!!!
All one has to do is look at twitter, Linkedin or Harman. I am not a bear nor a bull. I am a trend follower. I see alot of distribution days. I see a Chinese Stock market bubble…Tremendous amount of Margin debt…I see too much confidence and bullishness…all of this combining to an aged bull market.
No one knows the future…this bull market can continue and run to new highs. The key is not to have an opinion…but rather rules that can be followed without emotion. This is what I try to teach my students.
Many of the leading stocks and high growth stocks from a trend following perspective are failing. I look to combine both technical and fundamental aspects to identify leading stocks and high growth stocks….We currently have 7 Distribution days which is not healthy and now many leaders failing!
Could this be the beginning of the eventual reversal in the stock market?
Been a tough market with many breakouts not working…For this week…I am looking at the following….This is strictly educational in order to learn how to trend follow leading high growth stocks. Many of these type of trades will not work and money can be lost. Trade at your own discretion.
I had this question posed to me several times yesterday. As I am not a registered investment advisor rather a mentor for trend following, I discuss trend following rules. More so I teach my students to be their own Guru. Learn to trust themselves and to make decisions and even more importantly accept the outcome.
Trading is tough…there is never really a safe time. The only known is the unknown. However with Trend following rules one put themselves in the position to potentially benefit.
Alot of trading and trend following is common sense. Peter Lynch would take his children to the mall and see what they were looking for. In this case the cyber thieves are going to the mall to steal our credit cards and cause mayhem. Cyber stocks have been big profit centers and have been trending strongly…
The stock market sold off very hard on Friday..or in more descriptive terms…
The market really got creamed!!!
The SP 500 is now back below the 50 day moving average while the QQQ is slightly above. Due to large volume another distribution day was added. No one knows if the sell off will continue or we will bounce back like we have in so many cases. The key is caution and prudence. One must trade with a plan as well trade with an open mind. Be prepared for a sell off if it occurs as well as to trade positions if the market heals itself and rallies.
One must believe anything can happen!
Every weekend I make a short watch list and ready list. The below examples are a combination of fundamental and technical. I am not suggesting these stocks rather go study them for educational purposes…
I always try to buy the strongest stocks in the strongest sectors when the market is healthy. Well the market’s health is questionable to weak. We have a confluence of Distribution days, many leaders are not holding their break out gains yet we are at new highs. So what does one do….keep on trying. We do not know if will simply continue to chop around….breakout to new highs or breakdown.
Due to the high level of distribution days I am not fully invested. Actually not even half and have my finger on the button to exit.
The following stocks were ranked both fundamentally and technically…Will be interesting to see what the week holds….
This list is solely educational on how I trade my personal account. No suggestions or representations….There is always great risk to lose money…
Combining both weekly and daily charts when trading high growth stocks makes trend following much clearer. When looking at weekly charts various pattern recognition’s become evident. Watch this short video on high growth stocks to learn more on improving your trend following skills.
Everyone has an opinion and one should not be swayed in their trading or investing. With that said, Richard Duncan is the author of The Dollar Crisis and The New Depression: The Breakdown Of The Paper Money Economy.
Richard Duncan believes we are heading for a Multi-Decade Global Depression!
With all the massive debt and QE forever being printed….What happens if he is right?
How do you protect your financial wealth?
Great question and I am asked that often….As I said prior, Everyone has an opinion…however as we saw with the massive move of the US Dollar, anything can happen. Trend followers do not have an opinion. They went long the US Dollar and sold many of the other currencies. Some trend follower had tremendous years in 2014. This does not mean it will happen in the immediate future nor does it mean there will not be ugly draw downs. In reality Managed futures had one of the toughest 3 years + for decades.
My personal opinion is to pay down debt, be liquid, be available and most of all have a well thought out trading plan that enables one to trade a large basket of items we use in our daily existence. This daily existence ranges from stocks, bonds to everything we consume…
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.