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It’s not uncommon for nascent market rallies to feature a lot of crosscurrents, and we’re seeing just that during the past few weeks—the action has been generally constructive, but the environment remains news-driven with lots of rotation among stocks and sectors on a day-to-day basis. That said, because of the resilience of the major indexes and the strength (or set-ups) seen from leading stocks, we think you should continue to “lean bullish,” which means doing some buying as opportunities arise, but not pushing the accelerator to the floor. If this rally is the real deal, we expect more and more stocks from a variety of sectors to begin lifting off from multi-week launching pads. It’s something to watch for.

This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.

Stock Name	Price	Buy Range	Loss Limit
Trimble Navigation (TRMB)	0.00	55-59	-
PVH Corp. (PVH)	0.00	105-110	-
Melco Crown (MPEL)	0.00	14.5-16	-
Gulfport Energy (GPOR)	0.00	36.5-38	-
Eastman Chemical (EMN)	0.00	61-64	-
Computer Sciences (CSC)	0.00	37.5-39	-
Salesforce.com (CRM)	0.00	162-169	-
Cree, Inc. (CREE)	67.96	32-33	-
Abercrombie & Fitch (ANF)	15.37	43-45	-
Aecom Technology (ACM)	0.00	22.5-23.5	-

Current Market Outlook


The S&P 500 and Nasdaq came into last week perched just under major resistance levels. But despite the prior run-up, weak opens on every day of the week and the poor jobs report on Friday, the market couldn’t pull back! Of course, the indexes still aren’t free and clear, and there are many uncertainties out there including the Fed’s next move and the upcoming EU vote in Britain, so we can’t rule out another retreat. But the market’s resilience thus far and the improved action from many leading stocks bodes well. We’re keeping our Market Monitor in bullish territory—a breakout on the upside (with many more stocks hitting new highs) would prompt us to lean toward a fully invested posture, while a dip of a few percent would have us paring back again.

This week’s list has many enticing selections, but we’ve selected an energy stock for our Top Pick. Continental Resources (CLR) has the acreage to crank out huge profits if oil prices creep higher, and the stock has tightened up nicely after a big run. Start with a small position and add to it as it rises.

Stock Name	Price	Buy Range	Loss Limit
Zendesk (ZEN)	82.19	24-26	23-23.5
Zillow (Z)	76.64	29-30.5	25-25.5
UnitedHealth Group Inc. (UNH)	0.00	133-136	125-126
Ulta Beauty (ULTA)	331.95	227-234	208-211
Tata Motors Limited (TTM)	0.00	32-34	29-30
Steel Dynamics (STLD)	0.00	24.5-25.5	22.5-23
Sanmina (SANM)	0.00	26-27	24-24.5
Continental Resources (CLR)	66.19	40.5-43	37-37.5
Big Lots (BIG)	43.12	50-53	46-47
Broadcom Limited (AVGO)	266.26	158-162	148-150

The market is ending the year a lot like it began it -- by going down, led mostly by growth stocks, and that’s keeping us defensive. We do think better times are ahead, and we even saw a positive broad market divergence this week as the Nasdaq retested its lows. But as has been the case all year, we’ll refrain from any major buying until the buyers truly show up.

Tonight’s issue talks about some puke action from individual investors (a good thing) and the fact that, after this bear ends, the market is likely set to resume its advance (not a long-term top), plus we fine tune our watch list (one name broke out today) and dive into some potential leaders, too.

Last but not least, all of us here wish you and yours a happy, healthy and prosperous 2023. Cheers to better times ahead!

Current Market Outlook


After many weeks of choppy action, the sellers sunk their teeth into many indexes and stocks last week. Friday’s rebound was encouraging, but by our measures, the intermediate-term trend is sideways-to-down, the broad market is weak and few stocks are making any sustained upside moves—i.e., there’s still no money being made out there. On the positive side, many stocks remain near the top of multi-month ranges, and if earnings season goes well, plenty of new leadership could emerge. But right now, the onus is on the bulls to prove that they can create a sustained uptrend in the market and individual stocks. We’re knocking our Market Monitor to neutral and will be watching the action closely.

This week’s list has many resilient stocks that could be part of that new leadership if the bulls step up their game. Our Top Pick is Mohawk Industries (MHK), which is one of a few very strong housing supply stocks and has a recent catalyst to boot.

Stock Name	Price	Buy Range	Loss Limit
United Therapeutics (UTHR)	0.00	137-139	130-132
Taser (TASR)	0.00	24-25	22-23
Royal Caribbean Cruises (RCL)	0.00	80-82	75-76
Pharmacyclics (PCYC)	0.00	140-145	130-133
Outerwall Inc, (OUTR)	0.00	73-75	68-69
NetEase, Inc. (NTES)	0.00	104-108	96-98
Mohawk Industries (MHK)	0.00	160-165	150-153
HDFC Bank Limited (HDB)	0.00	54-56	50-52
Celgene (CELG)	0.00	117-122	108-111
Acuity Brands (AYI)	0.00	145-150	135-136

Current Market Outlook


The Nasdaq and leading growth stocks were whacked again last week, extending the correction in that group to just over three weeks. At this point, the major trend is still up, but intermediate-term, the onus is on the bulls, as many stocks (and the Nasdaq itself) have fallen toward key support—a couple of big selloffs from here would be a red flag, especially for names that have had big runs during the past year, though a strong sign of support could arrest the decline. Right now, we remain mostly bullish because many stocks are still in good shape, especially early-stage growth stocks that are trading resiliently and new leadership is emerging as money rotates into other areas.

This week’s list is a mix of both categories. Our Top Pick this week is Citigroup (C), which, despite its huge size, has great potential thanks to industry trends and recent news flow. The stock was the first big bank to leap to new highs recently, too.

Stock Name	Price	Buy Range	Loss Limit
Carvana (CVNA)	82.90	18-20	15-16.5
Citigroup Inc. (C)	0.00	66-68	63-64
Exelixis (EXEL)	27.35	23.5-25	21-21.5
iRhythm Technologies (IRTC)	51.15	41-43	37-38
Nintendo Co., Ltd. (NTDOY)	0.00	39.5-41.5	36-37
Packaging Corp (PKG)	0.00	108-111	101-103
Square, Inc. (SQ)	91.04	22-23.5	20-21
Teladoc, Inc. (TDOC)	127.95	32.5-34	29.5-31
Wayfair (W)	167.03	72-75	65-67
Winnebago (WGO)	48.56	34-35.5	31-32

Current Market Outlook


The market’s action last week—three days up and two days sideways in the S&P 500 and a run to new highs by the Nasdaq—looks excellent, and we think it’s time to put a little more of your sidelined cash to work. Yes, it’s a light-volume summer rally and earnings season will provide plenty of landmines to go along with the blastoffs, so we’re not advising going all in. But given last week’s early progress and stubborn refusal to give any of its advances back, we will bump our Market Monitor up by one step, putting it in the green. As always, we will listen to what the market tells us from here.

This week’s list has a couple of newcomers, including one of three Chinese stocks that have been making great strides. A few stocks with long Top Ten histories also made the grade. Our Top Pick is a Chinese retailer, JD.com (JD), that’s growing revenue at a blazing rate.

Stock Name	Price	Buy Range	Loss Limit
ASML Holding (ASML)	350.01	147-151	136-138
Huazhu Group (HTHT)	30.89	89-93	82-85
JD.com (JD)	39.58	41.5-43.5	38-39
JinkoSolar Holding (JKS)	0.00	26-27.5	24-25
Littelfuse (LFUS)	0.00	177-182	169-173
Netflix, Inc. (NFLX)	423.92	182-188	168-173
NRG Energy (NRG)	0.00	23.5-25	20.5-22
TD Ameritrade (AMTD)	0.00	45-46.5	42-43
Vertex Pharmaceuticals (VRTX)	230.36	152-160	140-145
Workday (WDAY)	194.88	101-104	93-95

Current Market Outlook


It’s not a wild, rampaging bull market, but there’s no question the evidence has improved during the past couple of weeks—earnings season has offered more good than bad, with a decent number of positive reactions and breakouts, and for the first time in months, we’re seeing some follow-on buying (strength leading to more strength), which is typical of what you see in a sustained uptrend. There are still hurdles to overcome (most indexes are still testing the top of multi-month ranges), and short-term, investors are a touch complacent, so we wouldn’t be shocked to see some wiggles or further crosscurrents. But with more stocks acting well and with the trends of the major indexes pointed up, we think extending your line makes sense. We’re nudging our Market Monitor up to a level 7 on tonight’s issue.

This week’s list is chock-full of recent earnings winners, including many that appear to be early in new uptrends. Our Top Pick is Qorvo (QRVO), a well-traded chip maker that’s just staged a wild earnings gap. Start small and preferably on weakness.

Stock Name	Price	Buy Range	Loss Limit
Agnico Eagle Mines (AEM)	79.05	58-61	53-55
Bristol-Myers (BMY)	66.24	54-56	50.5-51.5
Garmin (GRMN)	97.45	92-94.5	84.5-86
Inphi (IPHI)	120.16	68.5-71	61.5-63
Leggett & Platt, Incorporated (LEG)	49.79	49-51	43.5-44.5
MasTec, Inc. (MTZ)	66.65	68-71	62-63
MurphyUSA (MUSA)	118.21	113-117	98-100
Qorvo (QRVO)	129.47	97-102	87-90
TopBuild (BLD)	111.00	103.5-107	94-96
TransDigm (TDG)	599.41	520-540	480-490

Trouble comes from where investors least expect it, so it’s not surprising to us that the Russia-Ukraine situation is making investors nervous. Is there a chance this is the event that capsizes the market? Of course there is—and that’s why you should watch your stops and risk. But after such a powerful rally for much of February among the major indexes and many stocks, the odds favor the first dip being buyable, at least among leading stocks. That doesn’t mean the pullback can’t last a few days (news-driven ups and downs are likely in the short-term), but with the overall uptrend intact, we remain optimistic.

This week’s list isn’t as growth-oriented as the past few weeks, but there are still more than a few good stories here. Our Top Pick is Avis Budget (CAR), a well-known firm with surprisingly solid earnings growth prospects as global travel increases.

Stock Name	Price	Buy Range	Loss Limit
58.com (WUBA)	0.00	46-48	41-42
Trimble Navigation (TRMB)	0.00	36-38	34-35
Signet Jewelers (SIG)	0.00	93-95	85-87
Spirit Airlines (SAVE)	57.03	54-57	49.5-50.5
Regeneron Pharmaceuticals (REGN)	512.96	320-330	275-280
Penn Virginia (PVA)	0.00	14-14.5	12-12.5
Michael Kors Holdings Limited (KORS)	73.22	95-100	85-90
Keurig Green Mountain (GMCR)	0.00	105-112	91-92
Avis Budget Group (CAR)	0.00	45-47	41-42
Basic Energy Services (BAS)	0.00	21.5-23	19-20

Current Market Outlook


You shouldn’t read too much into last week’s action; volume was super-light as most investors were on the beach. We’ll get a clearer read on things this week and next as institutional investors return to their trading desks. Still, taking a step back, the market’s rally from early August is intact, and we’ve seen a continued, gradual improvement among leading stocks, with a few popping higher each week and, importantly, with many moving higher after their initial breakouts. Right now, we’ll keep our Market Monitor where it stands—we continue to lean bullish, but we’re not yet willing to pound the table—but we like the persistently positive action of the past month.

This week’s list features another strong group of stocks that have seen heavy-volume buying of late, a sign big investors are getting in. Our Top Pick is Avago Technologies (AVGO), a chipmaker with a couple of major catalysts that should propel earnings much higher in the quarters ahead.

Stock Name	Price	Buy Range	Loss Limit
Twitter (TWTR)	40.37	47-50	42-43
Skyworks Solutions (SWKS)	0.00	54-56	49-50
Seagate Technology (STX)	0.00	60-62.5	58-59
Petrobras (PBR)	14.78	18-19	16-17
Madison Square Garden (MSG)	298.38	64.5-66	60-61
Macquarie Infrastructure (MIC)	0.00	71-73	66-67
Mobileye N.V. (MBLY)	0.00	41-42	37-38
The Hain Celestial Group, Inc. (HAIN)	0.00	94-98	89-90
Broadcom Limited (AVGO)	266.26	81-85	75-76
Aruba Networks (ARUN)	0.00	20-21	18-19

Current Market Outlook


Last week brought the long-awaited breakout by the major indexes, but after a couple of days at new high ground, most sank back into their prior five-plus-week ranges today; small-cap indexes even broke their 50-day lines. With that said, most indexes remain in good shape, and the same can be said about the vast majority of stocks (a bunch of which have gapped up on earnings) and sectors—in other words, the evidence remains far more positive than not. Because of that, it’s fine to take a swing at some strong stocks on pullbacks, especially those that have recently shown great accumulation. However, we’re going to leave our Market Monitor at level 7 today given the lack of progress in the indexes, and we’ll keep our eyes open should today’s selling persist.

The good news is that this week’s list is chock-full of earnings winners that should find support on weakness. Many look enticing, but our Top Pick is Skyworks (SWKS), which is one of many super-strong chip stocks that just enjoyed a big earnings gap as investors anticipate better results ahead.

Stock Name	Price	Buy Range	Loss Limit
Allegheny Technologies (ATI)	27.78	20-22	17.5-18.5
Broadcom Limited (AVGO)	266.26	196-202	182-185
Cheniere Energy (LNG)	63.82	46-48	42.5-43.5
Citizens Financial Group (CFG)	0.00	35-37	32-33
Eagle Materials Inc. (EXP)	0.00	103-106	96-98
International Paper Company (IP)	0.00	55-57	51.5-52.5
Micron Technology, Inc. (MU)	43.31	22.5-24	20.5-21
Royal Caribbean Cruises (RCL)	0.00	92-96	85-87
Seagate Technology (STX)	0.00	42.5-45	38-40
Skyworks Solutions (SWKS)	0.00	88-92.5	82-84

Current Market Outlook


The market had a mini-crash this morning, as what looked like forced liquidation took the Dow down more than 1,000 points before a gigantic snapback. Today’s wash-and-rinse action (and the many climactic readings we saw) raises the prospects that a near-term bottom is in and that a bottoming process (weeks of vicious ups and downs) could begin. That said, the main trend of the market is down, so we’re advising a defensive stance—focus on capital preservation and building a watch list for the next sustained advance, while keeping new buys small. In time, we’re going to see some incredible winners set-up, but patience is required first.

This week’s list has a few solid growth stories, though they skew toward the conservative side of the spectrum. Our Top Pick is Chipotle Mexican Grill (CMG), which has the trading volume, growth prospects and dependability to keep big investors interested.

Stock Name	Price	Buy Range	Loss Limit
Tempur Sealy (TPX)	85.53	69.5-72.5	67-68
Mohawk Industries (MHK)	0.00	187-194	182-183
Lennar (LEN)	61.85	49.5-51.5	47.5-48
IntercontinentalExchange, Inc. (ICE)	0.00	222-232	213-215
Heron Therapeutics (HRTX)	35.25	32-35	29-30
Global Payments Inc. (GPN)	0.00	104-108	99-100
CyrusOne Inc (CONE)	0.00	30.5-32	28.5-29
Chipotle Mexican Grill (CMG)	773.32	695-715	670-675
CDW Corporation (CDW)	0.00	36.5-38	35-35.5
Alaska Air Group (ALK)	0.00	71.5-74.5	67-68

With today’s note, we offer more clarity on last week’s earnings report from Wells Fargo & Company (WFC) and provide updates on several recommended stocks.

After a bad 2018 for investors, it’s better to look ahead than reflect on all the carnage. With that in mind, here are 5 stock market predictions for 2019.

A good party stock needs a couple of things: First, it needs a convenient comparative nickname.

Burger stocks exploded last year. It started with the IPO of Shake Shack (SHAK) in January, an offering that was priced at 21, but began trading at 47. It was fueled by lots of hype about trendy private chains, like Five Guys, In-N-Out Burger, Whataburger, Umami Burger and Iron Chef Bobby Flay’s Bobby’s Burger Palace.