It’s been a relatively quiet week in the market, with most indexes up a bit as of this morning, but generally less than 1% (Nasdaq a bit better than that). Interest rates have also been quiet, checking in with their second straight week of little net change (up four basis points total in the past two weeks).
All in all, then, nothing has changed with the evidence, as most stocks, sectors and indexes are trending sideways here and are diverging from the big-cap indexes. At the same time, growth measures are showing a little relative strength (a small positive) and most areas aren’t weak—a few good days could make a big difference.
Individual stocks remain more scattered in their performance, but there, too, things remain generally trendless and tedious—when buying happens, it usually lasts for a couple of weeks before some selling sets in, and there’s also plenty of news-driven action (rotation from the market, earnings from other peers, analyst opinions, etc.).
Now, heading into the second half, it’s possible things will change; many hedge funds, for instance, get paid on performance quarterly, so it’s possible some re-positioning occurs starting next week. Plus, earnings season isn’t far off, with mid-July starting the tsunami of reports.
For the here and now, though, we’re sticking with our stance—there are some areas to make money, but it’s tricky out there, so we’re holding some cash, being selective and aren’t afraid to book some partial (and sometimes full) profits on the way up. We’ll leave our Market Monitor at a level 7 and see what comes next week.
SUGGESTED BUYS
We continue to like the look of Pinterest (PINS), which is one of the few stocks acting calmly of late. Like everything else, it’s seen selling on strength whenever it pokes its head up, but it’s been riding its 25-day line higher, which is far stronger than most names. We’re OK starting small here-ish with a stop near 41.
SUGGESTED SELLS
Partial Sells
If you bought Carvana (CVNA) and hung on through its initial wobbles, we’d consider booking partial profits here, with a stop near your cost (around 110) as shares have had a very nice run in recent days.
Full Sells
Analog Devices (ADI) – not bad, but nothing doing for a month and not rallying on good days for chip stocks
Fabrinet (FN) – looks OK but taking a profit near 250 round number resistance
Flex Ltd. (FLEX) – tripped stop.
SUGGESTED STOPS
Broadcom (AVGO) near 1500
Carpenter Tech (CRS) near 99
Carvana (CVNA) near 110
Credo Tech (CRDO) near 27
Crox (CROX) near 142
Dycom (DY) near 162
Dutch Bros. (BROS) near 36.5
First Solar (FSLR) near 230
Freshpet (FRPT) near 120
GE Verona (GEV) near 162.5
Hims & Hers Health (HIMS) near 18
Howmet Aerospace (HWM) near 76
Natera (NTRA) near 100
Onto Innovation (ONTO) near 208
Pinterest (PINS) near 41
Pulte Group (PHM) near 108
Robinhood (HOOD) near 19.8
Sweetgreen (SG) near 28
Taiwan Semi (TSM) near 155
Trade Desk (TTD) near 92
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