It’s been yet another constructive week in the market, with prices rising and some key levels being overcome—after this morning’s open, most major indexes are up 2% or more and are now beginning to “live” above their 50-day lines. By the letter of the law, in fact, the intermediate-term trend has turned back up, joining the longer-term trend (which never came close to turning down).
Moreover, the broad market has impressed—yesterday was the 10th straight trading day of fewer than 40 new lows on the NYSE, with four of the past five coming in below 20. Throw in some powerful short-term breadth readings earlier this week (which usually portend good things ahead) and that’s another plus.
Now, on the flip side, while there’s no doubt the evidence has improved, it hasn’t done so very powerfully, at least not yet: Defensive-type stocks and the Dow Industrials are helping to lead the way, earnings season has been tricky (lots of gaps down and, even among winners, a good amount of selling on strength) and growth measures, while not bad, are generally lagging behind some of these other areas. Said another way, there hasn’t been much upside power among many individual names.
Even so, the collection of evidence has improved nicely during the past three weeks—it’s not November 2023 out there, when the market took off like a rocket, but at the very least sellers appear to have lost their grip on things. We’ll leave our Market Monitor at a level 7 for now, but could nudge it up another notch come Monday if more stocks kick into gear.
POTENTIAL BUYS
Pan American Silver (PAAS) was recommended less than two weeks ago thanks to its strong rally into April and its tight trading after. And yesterday, the Q1 report propelled shares higher—looking like a resumption of the overall uptrend. If you’re not yet in, we’re OK grabbing a few shares around here with a stop under the prior low of 18.
Southern Copper (SCCO) and its peers have now settled down for about five weeks as the moving averages catch up; there has been some volume selling but the stock never dipped much at all compared to the prior run. If you own it (and if you already booked some partial profits), just hang on—but if you want in, we’re OK with buying some with a stop in the 105 area.
SUGGESTED SELLS
Partial Sells
Onto Innovation (ONTO) has make a solid move in the two weeks since our recommendation, popping to new highs last week and, this morning, rallying a few points on earnings. We like the action overall, but are OK booking a little partial profit here with a stop in the upper 180s (near your cost).
Full Sells
Eldorado Gold (EGO) – unable to rally with gold stocks in the past month or so
Datadog (DDOG) – cracked on earnings
Magnolia Oil & Gas (MGY) – tripped stop on a wild post-earnings reaction. If you still own some you can hold with a stop near 24.5
SUGGESTED STOPS
Air Lease (AL) near 47.5
American Express (AXP) near 224
Cava Group (CAVA) near 58
CNX Resources (CNX) near 22.8
Chord Energy (CHRD) near 174.5
Coinbase (COIN) near 199
Diamondback Energy (FANG) near 193
Eldorado Gold (EGO) near 13.8
Howmet Aerospace (HWM) near 69.5
KKR & Co (KKR) near 94
Martin Marietta (MLM) near 575
Micron Technology (MU) near 107
Natera (NTRA) near 85
Robinhood (HOOD) near 16.7
Southern Copper (SCCO) near 105
Sweetgreen (SG) near 19.5
TechnipFMC (FTI) near 24.5
Trade Desk (TTD) near 84.5
Warrior Met Coal (HCC) near 62
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