The time has come to have a look at the stock market again, as we saw a healthy rise in the U.S. stock market last week. The benchmark S&P 500 Index is again testing a key resistance level at 2803, and has been in a very slow but surviving bullish trend.
In a bull market, it can be much easier to make money going long of stock or a major stock index than making profit out of Forex currency pairs, which often tend to trend less. Of all stock markets, the U.S. market has historically been the most bullish, with the longest and strongest increases in market capitalization.
When it comes to stocks, an old saying says don’t say what you think, just say what you have in your portfolio, so I’m going to follow this adage and show which U.S. stocks I currently own. A word of warning first: this is not a recommendation, and I don’t use stop losses on my stocks. I also don’t use any kind of fundamental analysis as a filter, I just buy into outstanding bullish momentum, and I only buy large-cap stocks which are members of the S&P 500 Index.
My stock portfolio is currently 60% cash, and 40% long of the following stocks, with slightly differential weighting based upon the 20-day average true range as at the start of the calendar month:
NFLX (Netflix)
ABMD (Abiomed)
ADBE (Adobe)
HFC (HollyFrontier)
They all closed Friday at higher prices than what I paid for them. The most spectacular and famous performer here is Netflix, which has risen by approximately 110% since the start of this calendar year, which is an amazing rise. Be aware, though, that stocks that rise very sharply can also fall very sharply, and Netflix will be making an earnings announcement before the market opens tomorrow which some analysts fear might hit its value hard.