Following last week’s impressive turnaround, the market’s encouraging vibes continued this week, with all the major indexes posting gains in the 1% to 2% range (ballpark) coming into today.
Early April saw a bunch of true, panic-type readings, and after stabilizing on the tariff delay news, we wrote that the market had likely hit a low it could work off of. That said, the question was how strong any bounce would be—but so far, it’s been very encouraging, with a string of up days from the major indexes, improvement in the broad market (new lows have dried up nicely) and last week’s Three Day Thrust signal hinting that the market will be nicely higher in the months ahead. That caused us to extend our line last week.
However, there’s still more proving to do. As of today, the intermediate-term trend of the major indexes is on the fence (a couple of good days next week could do the trick, but it’s not there yet), most individual stocks are still in downtrends (65% south of their 50-day lines; there are still very, very few names hitting new highs) and with a ton of potential leaders set to report earnings in the next week or two.
Overall, we’re not going to ignore the primary evidence (trends of the indexes and stocks), so we’re leaving our Market Monitor at a level 5. Right now, we’re comfortable remaining somewhat cautious given everything we see.
But we think next week is shaping up to be vital: If the intermediate-term trend for the indexes turns up and we see a bunch of positive reactions to earnings among key stocks, we could get aggressive in a hurry. That said, we never anticipate these things, so if the market stalls out and/or potential leaders get clonked, we’ll stand pat or, at least, go slow on the buy side.
We’ll be watching, but the point here is to hold onto your strong, resilient names, as well as a chunk of cash, all while having your buy list ready should the bulls flex their muscle.
SUGGESTED BUYS
ServiceTitan (TTAN) dropped into our buy range in recent days, which we think marks a solid entry point. Granted, recent IPOs can be very, very squiggly, but we think a nibble here and a looser stop near the century mark is worth a swing.
SUGGESTED SELLS
Partial Sells
None this week
Full Sells
GeneDX (WGS) – imploded on earnings
Harmony Gold (HMY) – tripped stop
Sprouts Farmers Market (SFM) – it looks fine, but we’re going to take a quick, modest profit as the stock approaches its old highs here
SUGGESTED STOPS
Alignment Healthcare (ALHC) near 16.5
Ascend Pharma (ASND) near 150
BellRing Brands (BRBR) near 73
Expand Energy (EXE) near 99.5
Insulet (PODD) near 241
Monster Beverage (MNST) near 56
Planet Fitness (PLNT) near 90
Take-Two Interactive (TTWO) near 192 – shares are getting hit on a delayed release for its Grand Theft Auto VI game into May next year; let’s see how the stock acts after the initial selling
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