The market had another good day yesterday, with the Dow gaining 118 points and the Nasdaq rising 24 points. Many indexes hit all-time highs on the day.
With all three of our key market timing indicators remaining bullish, and with most individual stocks and sectors in good shape, we continue to advise a heavily invested stance.
Earlier this week, we sold Ligand Pharmaceuticals as the stock broke down in recent days, and we replaced it with Amazon, a well-know liquid leader that’s showing accelerating sales growth and huge earnings growth.
Today, we’re going to add a stock we think can be a liquid leader of the new market uptrend: Alibaba (BABA), China’s e-commerce giant that reported a terrific second quarter with accelerating growth, which pushed the stock to multi-month highs. We’ll go ahead and buy a position today.
All told, we’ll now have nine stocks out of a possible 10 and cash position of about 8%. Stocks rated BUY include Abiomed, Alibaba, Amazon, Five Below, ProShares Ultra S&P 500 Fund, Ulta Beauty and Veeva Systems. Stocks rated Hold are Facebook and Vulcan Materials.