
Current Market Outlook
The market’s gradual improvement since mid-August continued last week, with the intermediate-term trend of the major indexes turning back up and individual stocks (including both leading growth stocks, as well as many sectors bouncing strongly off prolonged corrections) acting well. We’ve even seen an impressive rebound in the broad market, with the number of stocks hitting new lows drying up drastically. We can’t say the major indexes are incredibly powerful, as many are at or just above their prior highs, but overall, the most bullish thing a market can do is go up, and that’s what we’re seeing. We’ll push our Market Monitor up another notch this week to a level 8 (out of 10) and will continue to put money to work as the evidence improves.
This week’s list has a bunch of strong charts from a variety of industries, including three chip names as that sector reasserts itself. For our Top Pick, we’ll keep it simple and go with one of the market’s liquid leaders—Nvidia (NVDA) has exploded out of a tight base on big volume over the past two days. You could start a position here or on dips.
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| Adient (ADNT) | 0.00 | 76-79 | 71-73 |
| Allegheny Technologies (ATI) | 27.78 | 21.5-22.5 | 19-19.5 |
| Bitauto Holdings (BITA) | 0.00 | 42-45 | 36.5-38.5 |
| Celgene (CELG) | 0.00 | 139-143 | 131-133 |
| Lear Corp. (LEA) | 0.00 | 160-166 | 149-152 |
| Micron Technology, Inc. (MU) | 43.31 | 33-35 | 30.5-31.5 |
| NVIDIA Corporation (NVDA) | 242.42 | 177-188 | 164-170 |
| ON Semiconductor (ON) | 24.07 | 16.7-17.4 | 15.2-16. |
| Square, Inc. (SQ) | 91.04 | 27-28.5 | 24.5-25.5 |
| Terex (TEX) | 0.00 | 41.5-43.5 | 37.5-39 |