Coming into Monday, it looked like the market might finally take a hit, as the U.S.’s bombing of Iran threatened to widen the Middle East conflict. Instead, the market quickly found support and it’s been a dandy week, with all the indexes up in the 2.5% to 4% range and with the big-cap measures cozying up to all-time highs.
That obviously keeps the top-down, intermediate-term evidence in good shape, but the better news came from individual stocks, where the action has also improved, with many more stocks lifting out of tight areas and with a few fresh breakouts emerging. To be fair, we wouldn’t characterize it as an upside bonanza, but things have picked up across the board, with new highs expanding and many stocks we own or are watching perking up.
Looking at the big picture as we wrap up the first half of the year, the market has put together one big setup in the past six or seven months, with many stocks following suit. We remain very optimistic when looking out many months due to this, due to the tepid long-term sentiment, and due to the unusual strength seen in May and early June (which portends good things down the road).
We would say that there are still some flies in the ointment: We are still seeing some selling on strength when names approach resistance, institutional-quality leadership still has a ways to go to be fully formed and many indexes and growth measures are testing recent highs—so far, so good, but any rejection next week would be short-term iffy.
Even so, we always go with what’s in front of us, and with more stocks joining the party, we’re moving our Market Monitor up to a level 8, extending our line a bit more as we look for names that are starting to emerge or are offering secondary buy points.
SUGGESTED BUYS
Uber (UBER) is still getting tossed around (up and down) on autonomous driving news/partnerships/rumors, but the chart looks intriguing, with a tedious pullback to the 50-day line the past five weeks followed by a big-volume rush back to its highs this week. We’re OK with a small buy here and a stop near 80.
Urban Outfitters (URBN) hit new highs in May and gapped nicely on earnings soon after, though it, too, has pulled back normally the past few weeks. Now it’s beginning to resume its upmove—we’re OK buying some above 72 with a stop down toward the 50-day line (call it 63 or so).
SUGGESTED SELLS
Partial Sells
None this week
Full Sells
Amphenol (APH) – nothing wrong with trailing a stop, but we’re going to book the rest of our profit on the way up as shares approach round-number resistance near 100 and are extended to the upside
Duolingo (DUOL) – tripped stop and sliced intermediate-term support
MasTec (MTZ) – looks fine but not dynamic; we’ll take a quick, modest profit
SiTime (SITM) – there is support under here, but shares flashed some abnormal action after a share offering.
SUGGESTED STOPS
Badger Meter (BMI) near 228
Core & Main (CNM) near 54.5
Credo Tech (CRDO) near 79
CrowdStrike (CRWD) near 445
Flex Ltd (FLEX) near 43.5
GE Vernova (GEV) near 425
Guidewire (GWRE) near 223
Insulet (PODD) near 296
Kyndryl (KD) near 38.5
Mosiac (MOS) near 34
Pan American Silver (PAAS) near 26.5
Sea Ltd (SE) near 147
Take-Two Interactive (TTWO) near 220
Uber (UBER) near 80
Urban Outfitters (URBN) near 63
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