“It’s better to look ahead and prepare than to look back and regret.”   - Jackie Joyner-Kersee   

Market Commentary:

Hopefully lots of uncertainty will be resolved after the election.

• The Advance/decline trend on the NYSE weakened; the NASDAQ iline s outright scary. This week’s 52-week new-high/new-low numbers indicate higher risk as well.
• There is tremendous strength and activity in the bio-tech sector. I would not have any shorts in this sector. Look for a slew of merger activity. I am ready for one in particular.
• The recent price moves on individual stocks are absolutely wild with gaps up and down. This makes people lose faith in any valuation metrics.
• It is more of a stock pickers market than usual as momentum factors are currently exaggerated, which is fine by me. It seems like the trading algos are running the show. I believe this will be the cause of the next “flash crash.”

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Economic data and market clues:

Earnings season remains in full gear this week, but will take a backseat to the election, a Fed meeting, an interest rate cut, and escalating wars.

Maybe it is time to stop focusing on The Fed and determine what price levels to invest in the best companies in the best sectors.

It might take a couple of head fakes before the election results produce real trends post-election.

Selected current ideas:

Magnet® : 

ADMA Biologics          ADMA           

Celestica                     CLS

IES Holdings               IESC

FACTS:

HealthEquity                HQY

Walmart                       WMT

JP Morgan                    JPM

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