MightyMO : Rob The Stock Markets Blind: Reviewing our stock portfolio

I have several accounts with Charles Schwab. Listed below is what I call my momentum stock account. It is a swing account, I will trade in and out of it quite often.

In a roaring bull market, most of these consists of stocks hitting highs and hopefully will hit even more highs. I left out commission costs as each broker has a different cost plan so I will leave that part up to you.

The only thing that is not shown are the non-commissioned ETF's I trade in and out of this account on a daily basis. For now, I will only show actual stocks. In future blogs I will discuss my reasons for adding or selling stocks on this list.

To be fair, a number of these stocks were purchased prior to 5/9/2013 as a lower price, but I first listed these on here on 5/9/2013, so I will use that as the start date.

The stocks I list here are those I think should outperform the market indexes </>

LADY OF THE DAY

CLAUDIA CARDINALE

News

THE STOCK MARKET INDICATOR

"What seems too high in price and risky to the majority usually goes higher eventually, and what seems low and cheap usually goes lower." This famous statement is from William O'Neil in his best selling book, How to Make Money in the Stock Market.

There are numerous indicators measuring everything from sentiment to fundamental ratios to technical chart patterns. Every one of them is subject to interpretations which can result in incorrect decisions.

Even if some of these indicators had predictive value, on any given day there are so many potential news events that could change market direction that it is impossible to keep track of them all.

But there is one indicator, one core piece of information, that is always up to date and always correct. That piece of information, is price. And particularly the closing price at the end of every trading day. All the news, inside information, economic and fundamental data available, is reflected in that closing price. Price is the ultimate stock market indicator.

The buying high price strategy works whenever the market is accommodating and the market is certainly in an accommodating mode.

THE FEDERAL RESERVE SYSTEM AND MARKET DIRECTION

My approach has always been to ignore the predictions and forecasting from the market media and tune in to the music from the Federal Reserve and stay with the trend. I have found out after a very long experience in the stock market, is to never fight the FED. As you all know, the FED implemented a process to rescue the US economy from the brink of a depression starting in 2008. It consisted of buying bonds and risky assets to pump money into the economy. It has been known as QE. Even with all the criticism , the economy has managed a recovery with unemployment declining, with the economic numbers pointing to further expansion and the housing market has definitely improved. ------------------------------------------------------- My MAJOR stock market axioms.

1. If the stock you purchased is going the wrong way, YOUR BEST AND SMALLEST LOSS IS YOUR FIRST LOSS (cut your losses short)

2. As best as you can, the market can be very volatile, NEVER LET A PROFIT BECOME A LOSS (sell before it drops below your cost basis)

3. Be on the lookout for stocks hitting their first 52 week high or all time high. The chances are excellent it will continue to hit new highs. BUY WHEN A STOCK HITS IT'S FIRST HIGH. A STOCK'S FIRST HIGH IS USUALLY IT'S LOWEST HIGH

4. Don't hesitate selling a stock if the trend has changed or market direction has changed. DO IT FAST.

5. When you have a winning stock, buy more of it and add to position. LET YOUR PROFITS RIDE.

6. IF you are in a position where you can't watch the market, sell your positions. One can always buy back the stocks.

7. Do take advantage of market irrationability. There are excellent opportunities when this happens. I will be relating these opportunities in future postings. It is the basis for the ROB the Markets Blind portion of my strategy.

8. Avoid people who are overly negative on the market. They don't make money consistently and you won't either. (Joe Granville was negative on the market for ten years (1990-1999) during one of the best 10 year bull stretches in history).

9. You're not in a contest to see how many picks you got right. Remember you goal is to make an overall profit.

10. NEVER, DON'T EVER, FIGHT THE FED

Reviewing our stock portfolio

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