Market Overview World markets remain bullish. Investors should hold onto their big winners and cut their losers. For investors who are still on the sideline, they should consider buying, especially for the investors who trade the US stock market. China A clear section rotation has been ongoing for a couple of months now. The big cap stocks are lagging, and the big money is clearly flowing into the smaller issues: The Shanghai Composite is lagging, some big money is being rotated out to the smaller stocks. A little more consolidation for this index is desirable - it has gone up a lot and deserves a longer-time rest
This index gaps up and makes a new high right at the top of the trading range. On the short-term timeframe, it is extended and we expect a pullback
Big money is flowing into the smaller stocks. Their corresponding indices are making all time highs on higher volume and consolidating on lower volume, this looks healthy
Same as above - small stocks are doing better than large caps
Asia (Hong Kong, Japan, and India) Stocks in other Asian countries/regions are doing fine in general. Of course, none of them are nearly as strong as the stock markets in mainland China. Hong Kong's Hang Seng index seems to be OK, still bullish. However, it is not nearly as strong as the stock indices in other parts of Asia (e.g., Japan and India, see below). Well, nowadays Hong Kong is not as competitive as it was 20 or 30 years ago when mainland China just opened its door
After 2 "lost" decades, Japan has started a new bull market since 2 years ago, and it is still going strong
The Indian stock market is going strong
USA US indices have finally broken out of their multi-month trading range and is now in an open running field. In addition, the stocks that we mentioned are doing just fine. This confirms that we are in a bull market in the US. The Nasdaq Composite index is making multi-year highs and now it is challenging its 15-year old all time high
The US small-cap benchmark, Russell 2000 index, has just made all-time-highs. This is a major signal to buy innovative small cap stocks on the US exchanges - forget about all the negative news, it is time to get busy buying stocks, while keeping risk controlled AT ALL TIME
The Value Line Arithmetic Composite Index (an index which mirrors changes if a portfolio held equal amounts of stock) is also making new highs, making it easier to make money on the "average" stocks listed on US NYSE, Nasdaq, and Amex exchanges
This bullish stance for the indices are confirmed by our own trading, recently, the stocks that we bought/mentioned have been doing great, $Cempra(CEMP)$ , $星巴克(SBUX)$ , $lululemon(LULU)$ , among others. In the Spring, many flowers blossom. Now it looks like it is spring time for US stocks; many stocks in the US market say "buy me"
Like when the Spring comes, many fine flowers blossom. All of a sudden, in conjunction with the US index buy signals, there are many immediately buyable US stocks: $FIREEYE(FEYE)$ , $波士顿科学(BSX)$ , $Criteo S.A.(CRTO)$ ,$麦斯莫医疗(MASI)$ , $Potbelly Corporation(PBPB)$ . That these stocks came from different industry groups (internet security, medical, home improvement, foods etc) shows that the market has internal strength and a diversified industry group is participating in the rally. Make sure that risk is controlled AT ALL TIME! 风险控制要天天讲，月月讲，年年讲。控制风险的方法主要是三点: 每只股票上投入资金不超过总资金10% 收到信号后，第二天开盘即买入，从买入点，如果股票跌10%, 立马割肉止损，如果涨，抓住不放 如果连续三支股票都割肉了，下支股票投入资金减半 FireEye, Inc. ( FEYE ) -NasdaqGS
Dr. Zhu Note: This seems to be a group mover (which is good), another stock in this industry group, CYBR, is also very strongBoston Scientific Corporation (BSX )-NYSE
Dr. Zhu note: In the US, medical stocks have been going strong, here is one more.麦斯莫医疗(MASI )-NYSE Criteo SA (CRTO )-NasdaqGS
Potbelly Corporation (PBPB )-NasdaqGS
Remember, while reward cannot be quantified before the move is over, risk to a large degree can be quantified, controlled, and managed appropriately. Please, control risk! Risk is a serious business! If you do not manage risk appropriately, you will not survive in the stock market for very long! If you manage risk well, you will be able to "play" the market forever, and you will be able to catch the big winners, which can go up 100%, 200%, 500%, and even 1000% or more! Yes, we know it, and we have done it time and time again. Europe European markets remain bullish, despite all the negative coming out from that region. That makes these technical "buy" signals doubly important: if the situation is really that bad, why are stocks moving higher? Chances are the worst is over and the media has greatly exaggerated things. What does 李嘉诚 know that the media doesn&# 39;t know? Why did he start to invest in EU heavily since last year? Well, he won't tell us, but based on the performance of the major EU indices, the situation seem to be turning for the better. Germany&# 39;s DAX index is making all time highs and stays there, it is a bull market there
France's CAC 40 index is making multi-year highs and keeps going higher, it is a bull market there
UK&# 39;s FSTE 100 index is a little bit lagging, but will it soon move to new high territory? Let keep watching this one...