Weekly Review: October 2, 2017- October 6,2017

News for the past Week:

Monday

Vegas Shooting. This saw a drop in MGM stock and saw an increase in Gun stocks

Tuesday

Stocks continue to win

Wednesday

Job report shows private sector job numbers down from last month

Thursday

Trade deficit hits 11 month low

Friday

First monthly job declines since 2010

This week started off terrible with the Vegas shooting. Market wise the week was good. The stock market continued to climb every day except for Friday. The job report news will be an interesting one to watch because this month a lot of the blame was on hurricanes. Which would make sense because two very powerful hurricanes hit the United States. That being said I don’t think that this trend will continue and if it does that might be a lot more concerning for investors going forward.

Sector Review from the last week:

XLE: up 0.49%

XLP: down 0.24%

XLB: up 1.92%

XLV: up 1.16%

XLU: up 0.56%

XLI: up 1.53%

XLF: up 2.09%

XLK: up 1.21%

XLY: up 1.72%

Stocks I bought and Sold this week:

GM bought on 9/26 at 40.51 and sold it 10/3 at 43.45

GDI bought on 10/2 at 27.74 and sold it 10/3 at 27.80

ZGNX bought on 10/2 at 41.05 and sold it 10/2 at 38,25

MRTX bought on 10/2 at 13.60 and sold it 10/3 at 13.01

ECYT bought on 10/3 at 6.34 and sold it 10/3 at 6.38

F bought on 10/3 at 12.31 and sold it 10/6 at 12.31

MCFT bought on 10/4 at 21.36 and sold it 10/6 at 21.77

LINU bought on 10/6 at 2.86 and sold it on 10/6 at 3.03

My take on the week of trading:

Stocks continued to push forward this week and that is certainty a good thing for those investors going long. I am concerned though with the high number of articles talking about how the bull market is weakening and that the next couple of months won’t be as good. For someone who is interested in short term holdings, these articles don’t bother me because all the short terms trends are still pointing good. All sector ETFs except for one had a positive week and the $SPY ended the week up 1.10%. If I was investing long I would be watching other indicators but I don’t see any reason to panic however, you must keep in mind that the next bear market will come and the decade long bull market can’t and won’t last forever. The only scary thing is the next bear market might be really bad considering how long this bull market is going. A lot of investors won’t see this coming and this will have serious implications. I think taking things a day at a time are for the best. It will definitely be interested to see when the next bear market comes and hopefully you know how to short stocks because money can still be made in bear markets.

As for my trading, I didn’t have as good as a week as last week. However, I was able to make some money in the end. I would like to limit the number of day trades I had. I think also trading less would be better than trading more. It should be quality over quantity so I think I’m going to trade less in the next week. I think I also went away from the stocks that I wanted to trade. I turned to stocks that breakout during the early morning and I felt like this wasn’t the best option for me at the moment. I will be looking for stocks that have a good couple of weeks and that it has a strong up ward trend and holding it for a couple of day. I also learned how much trade commissions can take away. I love my TD Ameritrade account and I think I might start shorting on that account. As for going long I think I’m going to stick with my Robinhood account. This will allow me to learn and be able to take small gains and not worry about commissions. I have been watching those stocks that break out during the day and I think shorting those stocks will be the best option.

What to look forward to next week:

Earnings:

Delta on Wednesday

JP Morgan on Thursday

Citi Group on Thursday

Dominoes on Thursday

Bank of America on Friday

Wells Fargo on Friday

PNC on Friday

My goal for next week is to get back to what made me money. I think stocks that are breaking out over a couple of weeks are a good bet and holding on to them for a couple of days can make me money. I want to get away from this day trading for now. I don’t think I’m quite ready to jump into shorting stocks so I think continuing to practice with paper money will be the best option.

Quote of the Week:

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffet