DARN NEAR OUT OF STOCKS!
A Relative Strength, Momentum Based Investment strategy requires upward market movement. But the markets topped out around a month ago and have pulled back about 2.5%. We don’t look for the highest peaks or the lowest lows. We buy equities in sectors with the highest relative strength in markets with momentum. We keep stops close and take profits.
So when markets slow down, this methodology slows down with it. We have other methodologies, but our option strategies are not mature enough to share with our readers. And option trades move very quickly. We write a monthly newsletter with only a handful of interim updates. And since this is a free newsletter for education and informational purposes only, fast option strategies are not consistent with this newsletter concept.
The Desert of the Real Quantum Multiplier is kind of a lonely place. We are currently holding only Fed Ex (FDX), Raymond James Financial (RFJ), Celanese Corp. (CE) and Applied Materials (AMAT). Lots of positions have stopped out.
We are short 38 July Calls on AMAT and the calls are in the money, so we may have to close them out.
There are some stocks we are keeping our eyes on, however. We are looking for breakouts on most of them, and a pullback on one. Here they are:
STOCK SYMBOL 3.29.17 Price SIGNAL
Aeri Pharmaceuticals AERI 45.25 Breakout at 52
Moneygram Intl MGI 17.00 Pullback to 13
Neuoraderm NDRM 26.90 Breakout at 29
Vanda Pharm VNDA 14.20 Breakout at 16
Kindred Bioscience KIN 7.05 Breakout at 7.50
Essent Group ESNT 35.51 Breakout at 39
THE MARKET AWAITS THE DESERT OF THE REAL!