In this month’s “Stay in Step with the Market” webinar, Scott and Irusha covered such timely topics as taking losses quickly, interpreting current market conditions, and identifying the industry groups that are starting to pick up steam.

 

Taking Losses Quickly (Before They Snowball):

 

The stock market is one of the only places where you can be right 50% of the time and still perform very well. When you fully accept that some of your trades will go wrong, you can depersonalize a stock’s negative  action, which makes it easier to cut your losses sooner. Don’t pay the high cost of waiting for a poor trade to reverse and “prove you right.” Move on.

 

Interpreting the Current Market:

 

The market is currently in a Confirmed Uptrend. It’s important for us to tune out the news and to take the market for what it is. The two major emotions that drive the stock market are fear and greed, and there is certainly plenty of doubt out there because of the length of this current bull market.

 

The best policy is to be flexible and focus on today. You never know what the market will do tomorrow. Allow the market to pull you in and push you out when necessary.

 

We are also getting positive feedback from our three gauges of the market: The Indexes, Leading Stocks, and Your Portfolio. When Scott and Irusha ran the “MarketSmith Leader Screen” in February’s webinar, 57 stocks came up in the results. When they ran the screen today, 67 names came up in the list as leaders. Many stocks are participating in this uptrend, so watch lists are long. A good sign. An even more positive signal is the number of bases being formed, which is a clear sign of institutional accumulation. When Big Money is participating, you should too.

 

 

 

Monitoring Industry Groups:

Identifying which Industry Groups are performing well gives us additional insight to how strong the market is and where accumulation may be taking place. Current Industry Groups making significant advances are:

 

Leisure-Travel: up 21% in the last month

Medical-Generic: up 19.1% in the last month

Energy-Solar: up 18.95% in the last month

 

As always, if you have any questions, feel free to contact us at (800)424-9033 or at reachus@marketsmith.com.

Best Returns,

The MarketSmith Team