
Current Market Outlook
The market had another decent week, with the major indexes finishing above key moving averages, though all are still stuck in multi-month ranges. But the calm action hid another round of vicious rotation beneath the surface, with most growth-oriented stocks at least taking on water, if not unraveling altogether. With few stocks in sustained uptrends and the major indexes effectively trending sideways, we continue to advise a mostly cautious stance, with small new positions and plenty of cash on the sideline. That said, you shouldn’t stick your head in the sand, either—we continue to see a good number of setups out there, and we believe a lot will come down to earnings season. A spate of breakouts would be encouraging, but as usual, we have to see it first.
This week’s list is mostly full of the steady growers and special situations that the market is favoring these days. Our Top Pick is
Tempur Sealy (TPX), which looks like a solid turnaround situation, with surprisingly big growth numbers to boot.
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| Arconic (ARNC) | 17.00 | 26-27 | 24-24.5 |
| Cabot Microelectronics (CCMP) | 156.17 | 143-148 | 129-131 |
| Fastenal (FAST) | 37.08 | 35-36 | 32-32.5 |
| Kansas City Southern (KSU) | 176.54 | 140-144 | 129-131 |
| Nike (NKE) | 89.77 | 92.5-94.5 | 85-86 |
| Taiwan Semiconductor (TSM) | 78.41 | 48-50 | 44-45 |
| TAL Education (TAL) | 50.49 | 38-39.5 | 34.5-36 |
| Target (TGT) | 124.77 | 109-112 | 100-102 |
| Tempur Sealy (TPX) | 85.53 | 79-82 | 71.5-73.5 |
| TJX Co. (TJX) | 59.24 | 58-60 | 53.5-54.5 |