The past month of market action reminds us of the people we see on the beach who tip-toe into the ocean, wait for their feet to adjust to the cold, then wade in up to their knees ... then their waist ... and finally dunk their heads in. That’s the way buyers have been acting of late, first nibbling on weakness, then buying in bigger lots, and now we’re seeing real leadership emerge. Granted, it’s not the most powerful situation we’ve ever seen, and volume has been generally light as we approach Labor Day. But there’s enough evidence to switch our Market Monitor into the bullish camp; that’s not a reason to go fully invested today, but it is our way of saying that, if you see a good set-up, go after it.
This week’s list continues the trend of enticing charts with solid growth stories. Our favorite of the week is
Michael Kors (KORS), a fast-growing retailer that exploded out of a six-month base last week after a great quarterly report. It’s a volatile stock, so use a loose stop, but we think it’s buyable around here or on any weakness.
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| ANN (ANN) | 0.00 | 32-33.5 | - |
| ASML Holding (ASML) | 350.01 | 56-58 | - |
| CF Industries (CF) | 45.23 | 210-215 | - |
| Francesca’s Holdings Corporation (FRAN) | 0.00 | 33-35 | - |
| Home Depot (HD) | 0.00 | 55-57 | - |
| LyondellBasell Industries NV (LYB) | 0.00 | 47-49 | - |
| Michael Kors Holdings Limited (KORS) | 73.22 | 49-53 | - |
| Palo Alto Networks (PANW) | 236.92 | 63-66 | - |
| Regeneron Pharmaceuticals (REGN) | 512.96 | 132-137 | - |
| Tesoro (TSO) | 0.00 | 36-38 | - |