Investors are ignoring the unreal circus atmosphere in Washington, D.C. and continuing to focus on economic growth, which is fueling their thirst for good investments. The Dow Jones Industrial Average has risen some 353 points since last month’s issue on good economic and earnings news. Mortgage applications are up 7.1%, unemployment claims continue to decline and job openings are rising.
Wall Street’s Best Dividend Stocks 297
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Market Views
Status Quo, for Now
After an amazing run, the sellers have finally come out of the woodwork for growth stocks, driving many down sharply during the past two days. Right now, it’s vital to honor your stops and even take some partial profits in winners if you’ve yet to do so.
That said, we’re not altering our stance that much. We think the next few days will go a long way toward telling us whether this pullback is a short-term event, or one with intermediate-term implications. For now, then, follow your stops, but we’re not advising any wholesale actions as most stocks (and the Nasdaq) remain above support.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978-745-5532, June 12, 2017
Buying Opportunities Ahead
Technology has been leading the advance all year, continuously making new highs. However, last Friday, a sharp reversal occurred. The QQQ fell 2.4%. Although the QQQ drifted higher today, it closed down 0.46%. It’s a good sign the downtrend was broken. However, it’s a little early to say the short-term decline has ended. Support is 135.50 and resistance is at 140.50.
Expect more volatility in technology. Friday is expiration. Quarterly balancing by institutions and sector rotation from growth into value has begun.
MACD is oversold and below 0, where good buying opportunities develop. With the daily MACD generating a sell and the daily trend down, it’s best to wait for a turn-up or favorable bottom formation to develop for a safer entry.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, June 12, 2017
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THE NEXT Wall Street’s Best Dividend Stocks WILL BE PUBLISHED July 12, 2017
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