Market View

Investing is complicated without knowing the rules, following my principles and rules will ensure your success. 

Don’t be afraid of the markets, remain calm, take your time to learn and understand why stocks rise and fall every single day on emotion and sentiment alone.

I don’t believe in providing a minute by minute running commentary on the stock markets, not because I don’t want to or can’t!. I simply don’t think it’s necessary or adds any real value, yesterday’s stock market performance will be different from today’s performance, no 2 days are ever the same.

I started learning how to invest in the stock market back in 2008 and began to read and listen to everything I could find, I soon realised that everyone had an opinion and very few were the same and none were very accurate.

There are thousands of people on social media and hundreds of businesses that provide their market opinions daily, I hear them all saying what happened yesterday, but very few can accurately tell you what is going to happen tomorrow. nobody can do that!

Please remember that the stock market is driven by individual and institutional sentiment and NOT by logic or rational thought or in fact by a companies overall performance either.

You will have noticed that very negative news will drive the markets down, not just great companies will fall but almost all of them will fall at the same time.

The negative news story could be related to one specific market sector such as airlines, but the entire market could be affected by this negative news story, also sometimes a negative news story within a sector such as food delivery could affect every company in the food delivery sector when it’s only one specific company that has the negative news.

Long term investing simply needs the investor to stick to the principles, rules and continue to invest through the negative news, market noise and endless commentary from the so called experts.

Through these volatile up and down periods the good stocks will also fall with the poor stocks, the difference is that the good stocks will rise again with the rising overall market but the poor stock won’t, they will continue to fall or remain flat, they will not rise with the good stocks.

The stock market conditions are evolving and changing everyday, there are very few days where the market is continuously rising or falling, the charts below demonstrate how volatile the markets can be. Also this volatility is actually normal, this is what the markets do everyday, so don’t be surprised by these daily rises and falls in the market. It is what the market does based on market sentiment by investors (millions of investors are creating the sentiment that moves the markets)

I have been listening to Bloomberg for some time and they are very good at telling you what is going to happen tomorrow morning because of the futures and what’s going to happen today once the market has opened, when there is a big sell off it’s seen as a bloodbath or a rout and when the market is buying big they just call it an up day, when in many cases it’s a rally, by all means listen to Bloomberg as it’s an interesting show and you will pick up some information, but please remember they are a news and information service who must continually say something about the stock market, they simply can’t be quiet, take what they say with a pinch of salt and make up you own mind whether to take action or not, Bloomberg cannot predict the future any better than anyone else.

Please select the “Useful Info” and “Principles & Rules” tabs for additional helpful information.

Proprietary Fundamental Data Screen (acceptable results)

Please see the targets listed on each chart below, all stocks must pass these fundamental targets before the buy triggered is accepted

 

Proprietary Fundamental Data Screen (poor unacceptable results)

These are poor unacceptable fundamentals and would not be accepted even if the buy trigger was generated (would not trigger a buy with these poor fundamentals)

 

Tesla Inc (TSLA) – 9 months

See the price movements over 9 months for Tesla Inc. (green=up day and red=down day) timing is very important as the overall trend is up, we must have clearly defined strict buy and sell triggers to ensure we don’t panic sell when the price is falling or to buy at the wrong time.

 

Apple Inc (AAPL) – 5 years

Apple Inc stock has been rising and falling over the past 5 years, (and much longer too) it’s overall trend has been upwards, but we would not have know that at the time, so it’s critical we know what our buy and sell signals are, timing is very important.

 

Bitcoin – USD – 5 years

Bitcoin is a very volatile cryptocurrency, seems like millions of people are promoting it now, but what happened to all those people who owned bitcoin when it was above 17,000 and now its at just over 9,000 ( you might get lucky but be careful with Bitcoin an other cryptocurrencies)

 

Cheesecake Factory (CAKE) – 5 years

Very important that we have set principles, rules and signals for when to buy or sell, we will never follow a stock to the bottom if we stick to the rules.

 

 

FTSE 100 (UK Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

S&P 500 (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

DJIA (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.

 

NASDAQ (USA Stock Market) – 5 years

Indexes move up and down all the time, they will never go straight up or down, the stock within them will all do the same.