Friday’s big surge upward—200 points for the Dow—was a clear bullish sign, a reminder that there’s lots of cash sitting on the sidelines waiting for a reason to get back into the market, and a reminder that when those billions of dollars eventually do find their way back into stocks, prices will skyrocket! Yet it’s been hard for the market to maintain a strong uptrend as the tug-of-war between stocks and bonds continues. And it’s not the yields keeping people in bonds these days, it’s simply fear. Thus our Market Monitor remains in the neutral zone—which means while it’s fine to target some attractive situations, you should keep some cash in reserve until the broad market is more supportive, and you should continue to practice risk management. That means buying on dips, not at new highs. It means taking some profits off the table when they come easily. And it means cutting losses short when things go against you.
We’re still very enthusiastic about the homebuilding sector, and our Editor’s Choice this week is Ryland, a homebuilder that’s appeared here this year twice before and has great potential to keep on climbing. Also attractive are companies in fertilizer, energy, electronic health records and more. Enjoy the issue and enjoy the summer!
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| Agrium (AGU) | 0.00 | 87-90 | - |
| Athenahealth (ATHN) | 0.00 | 78-80 | - |
| Cabot Oil & Gas (COG) | 0.00 | 38-41 | - |
| CLGX (CLGX) | 0.00 | 19-20 | - |
| Marathon Petroleum Corporation (MPC) | 0.00 | 43-46 | - |
| Ryland (RYL) | 0.00 | 23-26 | - |
| Spirit Airlines (SAVE) | 57.03 | 21-23 | - |
| TripAdvisor (TRIP) | 55.14 | 42-44 | - |
| Weyerhaeuser (WY) | 0.00 | 22.5-23 | - |
| Zillow (Z) | 76.64 | 39-41 | - |
