DonCorleone77
Sep 28, 3:11 PM
$VICR $RMBS $SIMO $CLS $FPS
@Miha241 @tste9
Another person and I run a subscription room to teach people the skills they need to make significant money in the stock market.
These skills involve identifying structural trends in the market as well as the stocks that are positioned to benefit the most from the structural moves.
In addition to identifying the structural moves and the companies posed to benefit, we also teach members the technical skills of portfolio management to know when to be aggressive and when to be defensive to protect your capital.
Recently, our members have benefitted from the following:
1) During the pullback in many growth stocks we in July and August, we counseled our members to not be aggressive during the market downturn.
We explained that successful stock operators ALWAYS make capital preservation their #1 priority and trying to pick bottoms in a downtrend is an easy way to blow up your account.
We told them to stay patient and hold only CORE positions of stocks that are in a broader uptrend and not add to positions or try to take new positions while the market was trending downward and fundamentals didn't matter.
2) We told our members that there would be a point when fundamentals matter again and they had to keep working to identify the stocks that maintained their fundamental characteristics even though the market was experiencing a multiple contraction in growth stocks.
Our thesis was that when the emotional selling ended, stocks with strong fundamentals could be repriced higher as investors started considering the conventional metrics that dictate stock prices...things like EPS, revenue and EPS growth, new products, competitive advantages, competitive moats, etc.
3) It turns out WE WERE CORRECT and stocks that still had strong fundamentals have rebounded nicely over the past few weeks.
Our members that followed our advice and began buying again once the market trend proved it had shifted have made big returns these past few weeks.
Some of the stock we posted about (and bought) as they started to come off their bottoms include the following:
VICR (I spoke about this one in the 'Trader's Edge' podcast recently when it was at
$200)
SIMO (we were buying/adding in the 240 range)
CLS (we were buying/adding between 270 and 300)
FPS (some of us bought/added as low as 29)
OUST (we were buying/adding in the mid-30s)
VIAV (we were buying/adding in the low/mid-30s)
SMTC (we were adding in the 130s)
FORM (some of us added in the 100 range)
AMKR (some of us added in the mid-40s)
RMBS (I spoke about this one of the 'Trader's Edge' podcast when it was at
$83)
While I believe the structural trend is still in tact, stocks are going to fluctuate (sometimes wildly) day to day.
RIght now, given we are outside of earnings season, IT IS MACRO RELATED NEWS/NARRATIVES DRIVING THE MARKET MOVEMENTS.
Today you have oil and bond yields up so the market is taking off risk.
When it does, you will typically see growth stocks down move than the general averages.
And...if some of those growth stocks have made recent moves higher then the move down can be larger due to profit taking, momentum players exiting, etc.
RIGHT NOW IS IT ALL ABOUT THE MIDDLE EAST/INFLATION AND THE BOND YIELDS.
Barring some news of a resolution in the Middle East, that will likely be the case until earnings season.
That means things can move up and down day to day and you will need to decide your investment strategy for this environment and whether or not you are will to hold stocks through the volatility.
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