Market Commentary
The market is trying to rally from deeply oversold conditions. The market rallied during the shortened holiday week but volume was anemic (which is not bullish) and the major indices are still below their respective declining 50 day moving average lines (which is not bullish). Looking forward, we are entering earnings season over the next few weeks and how the market (and each stock) REACTS to earnings will be critical. If we get a bullish reaction, that will increase the odds the market will likely rally from here and if we get a bearish reaction, and June’s lows are breached, then we will likely head lower. For now, as long as June’s lows are defended for the major indices odds favor we are moving sideways to higher and a new tradeable window has emerged. Conversely, if June’s lows are breached, then we are likely headed for another leg down.
Candy (a.k.a. Actionable Ideas)
LI Buyable at $41.70, place a protective stop 5% below your entry
ENPH Buyable Here, place a protective stop 5% below your entry
ALKS Buyable $32.33, place a protective stop 5% below your entry
BIG CAP LEADERS
VRTX
MCK
MRK
DLTR
LLY
LW
TAP
TMUS
PGR
PWR
SGEN
HSY
T
K
GIS
CPB
ALL
INCY
AMGN
SYY
Big Caps Crossed Above 50DMA
MCK
KO
KDP
MID & SMALL CAP LEADERS
CTIC
LNTH
TEN
GO
TPTX
HRB
MTOR
CNR
POLY
CDK
SAIL
COGT
MNDT
LRN
SHLX
TVTY
EVH
EXEL
SWCH
CVBF
Small & Mid Caps Leaders Crossed Above 50DMA
LNTH
Have a great week!
Adam
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