Market Overview US market is in a bull market, with more and more buyable stocks detected by us on a daily basis. Internet stocks and medical stocks seem to be the leading groups.
USA All major indices are in a "buy" mode. Thus, we should buy more stocks to gain more exposure, hoping to ride the ensuing uptrend in the US stock market. There is a proliferation of buyable stocks in the past 2 weeks, this confirms that US stock market's underlying trend is up. As such, we should convert our cash to stocks. But before we do that, we&# 39;d like to remind ourselves of the following risk management points, especially given that the US indices have been going up for a while and thus are entitled to a pull-back at any time.
Dr. Zhu note: our system reported FEYE as a "buy" about 2 weeks ago. Since then, FEYE has run up, then it goes sideways tightly. Currently, it is still buyable. Its sister stock CYBR, after a nice ramp up in its stock price, decides to offer some new shares, which put some pressure on that stock and FEYE. We feel that this is minor, and we expect that FEYE to keep going up shortly. Still, we control our risk, at ALL TIME, so that if we are right, we make a lot, if we are wrong, we lose a little. 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.