Here is the note I sent to Educational Members last Thursday night, June 11th, after the Dow dropped -1861 points. Please keep in mind that I will not regularly update this blog with my current market thoughts. I am just trying to give people a feel for the type of detailed analysis I am providing with my new product. If you are looking for regular real-time market analysis and stock idea generation, please visit the following link to sign up:

I’m getting many emails asking me about today’s price action. Overall, we are still in an uptrend but as I mentioned several times over the past few weeks, I was taking some profits because many leading growth stocks were getting extended and needed time to digest their recent gains. In addition, the bulk of earnings season is over and the news is now shifting back to politics, geopolitical concerns, and the uptick in coronavirus cases. Personally, I think all this is an excuse to take profits because the market’s had a great run and it was getting extended.

From here, I encourage everyone to know their timeframe, have their own objectives, and stick to their plan. If you have a longer-term timeframe and have strong entries on your positions, it will likely require some patience while many stocks consolidate. My objective is to protect assets for my clients, so I was already reducing exposure over the past few weeks and I reduced even further today. I mentioned that I would be adding on dips with my 50% cash position, but today’s heavy selling pressure gave me the feeling to wait for better opportunities in the future. In addition, my worst drawdowns usually come in March, June and September, so I simply want to protect my gains from earlier this year. If things stabilize, I can always put money back to work. I’m in no rush.

As I discuss in the Educational Videos, my general philosophy is the market is healthy 2 to 3 times a year. These healthy times usually last around 6 to 12 weeks. We already saw a nice uptrend from November 2019 through mid-February 2020, and we just had another one from early April through early June. Of course we can recover quickly and move to new highs, but I am looking for a new SUSTAINED uptrend and I’m confident we will get another one later this year. The key right now is to be patient and protect your confidence. I am still super bullish because the Fed is on our side and there are many stocks that I love longer-term. However, over the near-term, it doesn’t hurt to keep positions light and stay somewhat defensive until things set up again. I will discuss this further in Saturday’s video.

Thank you,
Joe Fahmy

In Saturday’s video, I discussed how I was 30% invested for clients (subject to change at any time) and reviewed the stocks that I will be looking to buy (or add to) if the market pulls back over the near-term. If you are interested in more content like this, please visit the link to my new Educational Product:

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Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.