Investors Should Focus on Specific Trends; Not Just on Where the Market Will Go Next

Jordan Kimmel |

stock market pullback, investing advice, best investment advice, stock market trends, stock market direction

The recent volatility has a lot of people asking, “What happens next?” While it would be nice to know the future (and nobody does) – it might be wiser to ask, “What is the trend?” While knowing the trend is really one of the most important “truths” get right, it is not as simple as it sounds. But if you stay on the right side of a trend, the market is your friend. What you want to be involved with are major trends, big sector moves, and the outsized returns that come from the best companies in pockets of growth.

One of the great expressions is that the trend is your friend; right until the end. Anyone can draw a line between two points and draw a trend line, but to be really successful in the stock market, you want to know the trend of the market itself, the economy, the stock you are interested in, and the sector the stock is in. Current charts are offering various stories to both bulls and bears alike. Some uptrends have been broken, and new uptrends have been initiated. All you want do to as an investor is stay on the right side of the market.

This last shakeout helped to identify some true market leaders. I like to see how the leaders rank on The Magnet® Stock Selection Process. I have recently shared Will Rogers and his theory of sticking with winners only! You need to be unemotional. I have been stopped out of both longs and shorts recently. Currently, the holdings in our current portfolio look great. Staying unemotional and letting the portfolio “reset” and “not being attached to any holding.” We just want to stay on the right side of the trend, which is up. Up for the trends in the economic news including employment, construction, and manufacturing. Expect higher prices and more volatility along the way.

Longs- Omega Protein Corporation (OME), Lannett Company, Inc. (LCI), Federated National Holding Company (FNHC)

Shorts- BroadSoft, Inc. (BSFT), Chico's FAS Inc. (CHS), Elizabeth Arden, Inc. (RDEN)

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU)

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BSFT BroadSoft Inc. 40.30 -0.35 -0.86 342,615
CHS Chico\'s FAS Inc. 15.40 0.08 0.52 2,321,646
RDEN Elizabeth Arden Inc. n/a n/a n/a 0
LCI Lannett Co Inc 24.20 0.60 2.54 884,415
FNHC Federated National Holding Company 17.62 -0.18 -1.01 95,501
OME Omega Protein Corporation 24.10 0.40 1.69 131,621

Comments

Emerging Growth

Taranis Resources Inc.

Taranis Resources Inc is an exploration stage company. The Company along with its subsidiaries is engaged in the acquisition and exploration of mineral properties. Its projects include Thor Property in…

Private Markets

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…

Cross Campus

With over 500 members and operating 80,000 square feet by summer 2016, Cross Campus is one of the country’s top ten shared, collaborative office or "coworking" operators in the US.…