It was a month where “less bad” was the winner. On the other hand, some picks occurred with the expectation buying on a pull-back and thus those with the greatest percentage loss represent the greatest profit opportunities. For base stocks, the only index that was worse was the NASDAQ. Base stocks lost to the S & P 500 and the Dow Jones Industrial average. Base stock performance is reflected in the following table. Note that when data collection occurred on July 1, the last date available for June was the 29th. I used the same end date of June 29th for the weekly stock picks as well.
June 2017 Base Stock Performance
Weekly stock picks fared better, on the average. Still, there were some wicked pull-backs and consequent buying opportunities for July that were clearly manifest in the following table.
June 2017 Weekly Stock Picks Performance
One important take away from the Tech and semi-conductor sell-off in June relates directly to overall market risk. These stocks had outpaced all other sectors since the beginning of the year. The fast run-up increases risk and the resulting sell-off is necessary before the next run-up in these same stocks can begin again. In fact, the bigger a sector sell-off is, the lower is the risk that the overall market will need to correct or crash.
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