CASH is a Position too

Stock  Watch  List 

Market is under pressure currently and it's best not to take any new stock position right now.  Prudent thing to have been doing last week was to trim down the stock position and not be tempted to be buying the dips.  Last year exactly around this time, market took a tumble and we corrected  -35%  in 35 days.  That was a painful lesson for us all to learn from.  What the market will do going forward is not something I would dare to predict.  The fact that the leading growth stock index  $QQQ  has sliced down past the 50 day sma(Simple moving average) and corrected  -6.42%  within 2 weeks is something retail investors should be really concerned about.  Preserving the capital is a priority right now.  Personally I have trimmed down the total number of stocks in my portfolio from 10 down to 5 in the last 2 weeks.  Raising  CASH  is my primary goal.  Last time around Sept 2nd,  $QQQ  corrected  -12.6%  within 3 weeks.  Growth stocks would tend to correct 2 times faster n deeper than what the  $QQQ  would normally correct.  

Market correction is a normal thing to expect when we have made such a great run since the lows attained on March 23rd of 2020.  If you have doubled your portfolio since that time than congratulate yourself for a job well done.  We will once again have the opportunity to attain gains, once the market settles down and shakes out the weak holders.  We just need to allow the true market leading stocks to consolidate the gains and form a new base.  Allow the 50 day sma to catch up with the 21 day and 10  day sma.  Lots of leading stocks are very far extended from the 50 day sma currently and that sort of progress is not sustainable.  If your stock has attained  +20%  to  +25%  gains, it makes sense to trim down the position and just maintain a small core position.

I have developed a stock watch list of stocks that had at one time gapped up with strong volume or had make quick gains of  20%  or more within 3 weeks.  These stocks are supported by the institutions and did not fall down to the 50 day sma.  Some of them are hovering above the 21 day sma.  Some have bounced off the 50 day sma.  These are the characteristics of stocks that are supported by the institutions.  They are held up and accumulated while the market is correcting.  It would be best if they retrace a little bit and consolidate the gains to form a new base.

Stocks:

1. $ASML
2. $ALGN
3. $APPS
4. $AXON
5. $ATKR
6. $BBBY
7. $DE
8. $DQ
9. $ETSY
10. $FRHC
11. $FUTU
12. $GBTC
13. $GNRC
14. $HOME
15. $IDXX
16. $INMD
17. $LOB
18. $LOVE
19. $LRCX
20. $MXL
21. $PINS
22. $PLT
23. $QFIN
24. $RCII
25. $RIOT
26. $SI
27. $SNAP
28. $SONO
29. $SYNA
30. $TDC
31. $TGH
32. $TTGT
33. $TWTR
34. $WAL
35. $WSM

Good luck trading this week.

Don't stress and allow the market to do it's thing.

Patience is the key and sell your stocks into strength to raise  CASH  now.  Just a quick reminder to all my followers on blogger and tweeter:

CASH  IS   A  POSITION  TOO

Happy Trading!

Amin