Likewise, the number of stocks hitting our suggested sell stops can also trigger at the start of market corrections. Our Focus List sharply contracts at such critical junctures. This is a red flag. Singularly, our Focus List acts as a market barometer of sorts.
Here is one of many examples of our Focus List in action. For the week ended June 2, we had 20 leading names on our list. Profit opportunities were present as we advised members in real-time as can be seen in our report archives. But as the market wore on, the number of stocks shrunk to just 6 names as of late as markets have come under various degrees of selling pressure since then. As we discussed in our webinars and in our reports, the North Korean issue is just an excuse for the market to sell off as market internals remain unwell. On Thursday, we saw the correction continue on seemingly no particular news though concerns once again reared up that the economy is unwell and Trump may be unable to get his pro-economic agenda passed.
When such action occurs, one may find one's sell stops being hit thus pushed into the safety of cash shortly before or just as a market correction begins. We have been advising members to keep stops tight so risk is minimal. Meanwhile, trying to rely on so-called tried-and-true indicators can steer you in the wrong direction especially in this QE money printing environment that distorts and manipulates markets. We have seen how many once-reliable indicators have failed since 2009 when QE began.
Price/volume action of your stocks remains the one true indicator of getting you into stocks when market trends begin and getting you into the safety of cash when market corrections begin. This explains the many profitable opportunities that have come and gone this year and in years prior. Our various buying strategies such as the Wyckoff undercut & rally and Voodoo volume dry-up make for very low risk entry points while keeping stops tight. Pocket pivots and buyable gap-ups continue to play their role. See our report archives HERE.