Stock Picker’s Market
Back in 2007, one of my favorite money managers, Ken Heebner, was up +80% for the year while the S&P 500 was only up +3.5%. How did he do it? He was concentrated in the best stocks from the strongest sectors. I remember it well because I was focused on the same stocks and I was up +72% that year. Some will argue that he gave a great deal of his gains back, but that [...]
Random Thoughts
Every one of these topics could be a separate blog post, but I'm just going to fire off a few things going through my head right now (in no particular order): 1) I keep hearing about how we should prepare for a "higher rate environment." Why are very few people taking about the possibility of rates staying low for the next 3-5 years? 2) No one wants to commit to this market with any conviction. [...]
Stocks Showing Great Relative Strength
The following is a video of stocks showing relative strength. The purpose of this video is to pass along some of my experiences from 18 years of trading, and to provide education and market commentary. If you have any questions, you can email me directly at jfahmy@zorcapital.com. Thank you for watching and good luck trading! Charts are provided by MarketSmith. To learn more or for a trial, click here! Follow me on Twitter @jfahmy Follow [...]
A Few Thoughts on Monday’s Selloff
At first, you might laugh at the title and say: "What selloff? The market was only down -0.41%." Keep in mind I mainly trade individual growth stocks and beneath the surface, there was some damage today. 1) Relative to how much the general market was down, an abnormal amount of stocks were down over -4% on Monday. 2) The IBD 50 (an index consisting of market growth leaders) was down -2.2% on Monday. It was also down [...]
A Market Scenario that Frustrates the Most People
A scenario that would frustrate the most people is if the market stays in a range for a while. Let me explain: 1) The perma-Bears want the market to go down and STAY down. I'm assuming it's because they've missed the rally, they feel the market is overvalued, they're afraid to buy near highs, or they're just miserable people in general. Of course the market will have pullbacks and shakeouts, but I don't see a [...]
5 Reasons to Stay Bullish Over the Near-Term
1) The NUMBER ONE criteria I use to evaluate the overall health of the market is the price action of leading stocks. Right now, I am finding many strong fundamental companies forming strong technical patterns. When I see this across many sectors, the market has a high probability of doing well. 2) Seasonally, we are heading into one of the strongest times of the year. April 9 to 21 is traditionally a very good period, [...]