- Economic Events
- Index Volume
- Portfolio Updates
The NASDAQ and S&P 500 rose sharply on Friday to finish the week. The NASDAQ gained 2.31%, while S&P 500 gained 2.37%. Volume expanded on the NYSE, while it declined on the NASDAQ. Therefore, the S&P 500's action counted as a follow-through day, while the NASDAQ's action did not.
Keep in mind though, we have yet to reclaim the BP (bolded pivot), which in our experience, typically happens prior to the follow-through days that succeed. (We currently have a study underway which we plan to share with everyone on this once it's complete).
The health and breadth of the market's leadership improved Friday. However, it was certainly nothing to write home about. Other than continued strength in many of the biotech shares last week, the oil/gas & related stocks exhibited the most strength by far. This is nothing new though. These two groups have been the strongest for a while now.
In addition to the biotech and oil/gas & related stocks, we noticed the most strength and improvement in the cyclical and/or commodity related sectors of the market, including but not limited to the metals/mining, steel, materials & building related, agriculture, and aerospace/defense sectors.
No doubt, these types of stocks can lead a general market uptrend, as was the case between January and June this year. The S&P 500 was the strongest major index over this period and oil stocks were of fire, clearly leading the way higher. Meanwhile, the NASDAQ and most traditional growth stocks languished.
Given everything we just discussed above, it's very hard to consider the general market as being in an uptrend. Not to mention, all four major indexes continue to trade below their 50 and 200-DMAs, as well as their long-term downtrend lines.
Therefore, investors, trend traders and position traders should keep exposure to minimum of probing trades only, or continue to remain 100% in cash depending on how you personally operate. Otherwise, the current environment is still best left to short-term traders that play both sides of the market and excel under the current conditions.
So, until we gather enough evidence to suggest that a new, sustainable uptrend is in play, continue to keep a close eye on how rotation is taking shape and be sure to maintain an updated watch list of the strongest stocks, in the strongest groups. These will likely be the first stocks out of the gate when the market finally establishes a sustainable uptrend.
The NASDAQ rose 2.31% on Friday, although volume declined, so it did not qualify as a follow-through day for tech-heavy index.
The S&P 500 rose 2.37% as volume on the NYSE expanded Friday, which counted as an official follow-through day for the large-cap index.
The Russell 2000 traded in a similar manner to the other major indexes last week, and continues to struggle below short-term resistance, despite being the only index to hold above June lows.
The DOW acted in a similar manner to the other major indexes again last week. However, the industrial index managed to push its way up through significantly more overhead resistance than the other three indexes.
Sectors & Industry Groups
Potential Leadership Groups
- MEDICAL-BIOTECH, ENERGY-OIL/GAS, MATERIALS, AGRICULTURE
Watch CALX for a big volume move through $63.65, with a sell stop at its 23-EMA.
Watch DV for a big volume move through $29.09, with a sell stop at its 23-EMA.
Watch CEG for a big volume move through $87.40, with a sell stop at its 50-DMA.
Watch OXY for a big volume move through $72.04, with a sell stop at $69.00.
Watch FIX for a big volume move through $107.98, with a sell stop at its 50-DMA.
Watch BCRX for a big volume move through $14.47, with a sell stop at its 50-DMA.
Watch CORT for a big volume move through $28.75, with a sell stop at its 10-DMA.
Watch HALO for a big volume move through $46.12, with a sell stop at $44.70.
Watch MYOV for a big volume move through $25.70, with a sell stop at its 10-DMA.
Watch PLRX for a big volume move through $87.40, with a sell stop at its 50-DMA.
Swing Trade Ideas
Swing Trade Ideas contains a mixture of stocks. When the market is in a healthy uptrend, there will tend to be an overflow of stocks that were left out of the Focus List because they looked less actionable, despite being of similar fundamental quality, or were of lower fundamental quality altogether than the stocks included in the Focus List section above.
Because this section also includes stocks that are at times, devoid of fundamentals and typically only included for technical reasons, extreme care should be taken when trading these names. These stocks are there for experienced traders with a shorter time frame, that has a thorough understanding of position sizing risk and management.
CP – Constructive Pullback
PP – Pivot Point
SS – Sell Stop
TS – Trailing Stop
YELP – CP $36.34, SS 50-DMA.
ADM – PP $92.26, SS $88.00.
CF – PP $108.28, SS 50-DMA.
CLH – PP $119.44, SS 23-EMA.
CTVA – PP $63.24, SS 50-DMA.
DECK – CP $352.23, SS 23-EMA. LF $352.23, SS 23-EMA.
DVN – $75.27, SS 10-DMA.
FLR – PP $29.05, SS 10-DMA.
ACLX – PP $21.15, SS $20.00.
AMGN – PP $254.70, SS 10-DMA.
CINC – PP $35.43, SS 10-DMA.
CTKB – PP $15.90, SS $15.00.
HAE – PP $80.94, SS $78.57.
HRMY – CP $49.35, SS 23-EMA. LF $49.35, SS 23-EMA.
KRYS – PP $72.56, SS 50-DMA.
NBIX – CP $109.26, SS 50-DMA.
SWAV – PP $284.41, SS 50-DMA.
TMCI – PP $24.18, SS 23-EMA. LF $24.18, SS 23-EMA.
VRNA – PP $ 11.00, SS 50-DMA.
VRTX – PP $305.95, SS $300.00. LF $296.14, SS 50-DMA.
LNTH SWAV FSLR TMDX AXSM CHWY DGII ABOS MYOV WOLF INBX PRTA PRVB CMG GKOS ALNY CELH SRTS DICE
SGML STEM RIVN SG ASAN ASO CPNG CEG PFHC UDMY EMBC ABNB ARHS ARRY
MAXN ENVX PTCT COMM COMM RVNC ALDX PI BCAB MRSN GTHX AEHR EVTL RYTM TH GOSS DBTX COGT AMLX CPRX FNGR IMUX
ABOS ACLX ADM AEHR AKRO AMGN AMLX ATXS AZPN BCRX BHVN BIIB BMRN BOWL BSM CAH CALM CALX CCRN CDRE CEG CF CHRD CINC CLH COGT CORT CPRX CRBU CTKB CTVA CYTK DAWN DCGO DECK DEN DGII DICE DV DVN DXCM ELF EOG ESMT EXTR FCFS FGEN FIX FLR FREY FSLR GOSS HAE HALO HLIT HRMY IBKR INBX IONS IRDM ISEE IT KNSL KRTX KRYS KURA MODN MPC MUR MYOV NBIX NOTV NSSC NTNX NUVL OLLI OXY PAYO PBF PBRA PLRX PRCT PRTA PYCR REGN RVNC RYI RYTM SANM SAVA SGML SLB SLNG SMCI SNDX SPXC SRPT STLD SWAV TCDA TDW THS TJX TMCI TWTR UAN UNM VERV VERX VRNA VRRM VRTX VTYX WOLF WWE XENE XMTR XOM YELP