Note: We’re sending Movers & Shakers a couple of days early as our offices will be closed on both Thursday and Friday. Also, as a reminder, there will be no Top Ten next Monday, November 27—it’s one of our two Mondays off all year—though our offices will be open, so don’t hesitate to email with any questions. Have a terrific long holiday weekend and we’ll be back at it again next week.
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So far, it’s been a relatively quiet pre-holiday week, with the big-cap indexes up a bit, the broader indexes flat or down a smidge, and with interest rates also down a little (three to five basis points). We’ll see what happens today after Nvidia’s earnings last night, but suffice it to say that the intermediate-term trend continues to point up.
Interestingly, while the small- and mid-cap indexes remain just so-so (positive from an intermediate-term perspective, but still lagging overall), there is one big positive we’re seeing from the broad market—the number of stocks hitting new 52-week lows has shrunk to low levels for six straight days, which is a good sign that the selling pressures are easing. Obviously, the figures can always change, but so far, it’s encouraging.
With regard to individual growth stocks, the action is pretty much the same as it’s been—there are definitely a good amount of stocks acting well, though the number of stocks hitting new highs is still relative modest and many growth stocks are still repairing the damage.
All told, we’re still encouraged, though—we’ll leave our Market Monitor at a level 6 for now, but we could bump it up soon if the action continues to improve. We may shoot out a quick update next Monday afternoon since there’s no regular Top Ten issue if our thoughts have changed at all. Until then, enjoy your turkey.
POTENTIAL BUYS
Comfort Systems (FIX) briefly spiked above 200 before pulling back some, filling part of the big gap up early last week. If you’re not yet in, a dip toward 190 would be tempting, with a stop in the mid-170s.
SUGGESTED SELLS
Partial Sells
Cameco (CCJ) looks great, but commodity stocks continue to struggle. If you have a double-digit profit, consider selling a portion and holding the rest.
XPO Logistics (XPO) continues to act well off its earnings gap in late October, though it’s a bit extended near-term and let’s not forget the stock already had a big run earlier this year. If you haven’t yet, we think booking a little partial profit up here makes sense, with a stop for the rest near 77.5 (around the close of the earnings move).
Full Sells
BWX Technologies (BWXT) – looks fine, but not powerful; we’ll get out around breakeven
MINISO Group (MNSO) – had a nice setup but failed after earnings
SUGGESTED STOPS
Autoliv (ALV) near 97
Axon Enterprises (AXON) near 213
Cameco (CCJ) near 40.5
Comfort Systems (FIX) near 176
Dell Technologies (DELL) near 68.5
DoorDash (DASH) near 86
FTI Consulting (FCN) near 210
Eli Lilly (LLY) near 560
Light & Wonder (LNW) near 78
Martin Marietta (MLM) near 433
Nutanix (NTNX) near 33.5
Ollie’s Bargain Outlet (OLLI) near 74.5
Palantir (PLTR) near 16.9
Petrobras (PBR) near 15
Range Resources (RRC) near 31.9
XPO (XPO) near 77.5
Zscaler (ZS) near 168
