
Current Market Outlook
Last week featured a lot of dramatic news items (including negative oil prices!), but it ended up being a quiet week in the major indexes, which we take as constructive—the action allowed some stocks to settle down a bit, which is often a sign of accumulation. Thus, we’re optimistic, but the key from here is to take things day by day and to stay in gear with the market’s evidence. Right now, with the intermediate-term trend still up and many stocks acting well, you should be putting some money to work, and then see what comes—further upside (especially if we see many bullish earnings gaps) would be a sign to do some follow-on buying, while a couple of sharp, big-volume selloffs in the market would tell you to hold off. As we wrote above, we’re optimistic the path of least resistance is up, but we’ll stay flexible and take it as it comes.
This week’s list again has plenty of good-looking names to choose from. Our Top Pick is
Pinduoduo (PDD), which has turned powerful after a five-month rest. You can start a position here or (preferably) on dips of a couple of points.
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| Alnylam Pharmaceuticals (ALNY) | 143.58 | 136-141 | 120-123 |
| Boston Beer Company (SAM) | 459.16 | 435-450 | 390-400 |
| DocuSign (DOCU) | 107.98 | 101-105 | 88-90 |
| Exelixis (EXEL) | 27.35 | 25-26.5 | 22-23 |
| Freshpet (FRPT) | 107.99 | 74-78 | 65.5-67.5 |
| MarketAxess (MKTX) | 439.96 | 420-440 | 375-385 |
| Netflix, Inc. (NFLX) | 423.92 | 410-426 | 370-380 |
| PayPal (PYPL) | 147.00 | 117-122 | 107-109 |
| Pinduoduo (PDD) | 87.53 | 48-51.5 | 42-44 |
| Snap Inc. (SNAP) | 16.68 | 15.5-17 | 13.5-14 |