Note: We’re sending an abbreviated Movers & Shakers (market commentary and updated stops) a day early as our offices are closed tomorrow for Independence Day. Have a great long weekend!
The market came into this week in an interesting position when looking at the trends—because of the bifurcated nature of the advance, the intermediate-term trend was actually on the fence as most indexes (even including the S&P 500) were within spitting distance of their 50-day lines. Happily, we’ve enjoyed a solid bounce so far this week, which keeps the trend pointed up.
Overall, we’d say the story remains largely the same—there are some chinks in the armor overall, including some tertiary sentiment stuff (especially in the options markets) and short-term momentum measures (as the Nasdaq tested its highs yesterday, just 100 stocks hit new highs vs. 200 six trading days before). There’s also been a lot more up-down-up-down action that, after a sustained run, usually tells you the bears are starting to put up a fight.
After 13-plus weeks up that’s brought some amazing moves in stocks, it’s certainly possible the rally could run out of steam, leading to an outright correction or a longer consolidation. But it’s usually best not to guess at these things—right now, the trends are up for the major indexes and leading stocks, while abnormal selling has been hard to find.
We wouldn’t be going nuts on the buy side, especially in names that are extended to the upside, but we continue to think a heavily invested position makes sense until proven otherwise. We’ll likely keep our Market Monitor at a level 7 or so (we could push it back up a notch, too) come Monday.
SUGGESTED SELLS
We’ll have some come Monday, but nothing has tripped an obvious stop this week. In the meantime, we’re trailing stops as stocks work their way higher; we have a bunch of updated stops below.
SUGGESTED STOPS
ASML (ASML) near 326
Avalara (AVLR) near 112
BJ’s Wholesale (BJ) near 33
Carrier Global (CARR) near 19.9
Ciena (CIEN) near 51
CrowdStrike (CRWD) near 87
DraftKings (DKNG) near 31.5
Five9 (FIVN) near 102
Immunomedics (IMMU) near 30.5
Inphi (IPHI) near 106
LGI Homes (LGIH) near 77
Neurocrine Bio (NBIX) near 115
Nvidia (NVDA) near 334
Pan American Silver (PAAS) near 25.5
Pelaton (PTON) near 46
Seattle Genetics (SGEN) near 154
Teladoc (TDOC) near 159
Tesla (TSLA) near 875
Trex (TREX) near 113
Zoom Video (ZM) near 200
Zscaler (ZS) near 92