“We are continually faced by great opportunities brilliantly disguised as insoluble problems.”      -  Lee Iacocca

Market Commentary:

Stop trying to call the top. It is better to look for correct entry points.

• The market rewards you if you invest during times of uncertainty. You pay a dear price in optimistic times.
• With so many individual companies showing strength, we are finding great ideas to invest in.
• The Advance/decline line on the NYSE improved; the NASDAQ line improved as well but is still looking uncomfortably weak.
• This week’s 52-week new-high/new-low numbers showed the number of new lows declined significantly, with an expanding number of new highs. The market looks ready to move higher.
• I think I see several blow offs are taking place that will not be recognized until the tide goes out. Be careful and do not chase the algos, or at least use stops.

Economic data and market clues:

The holiday-shortened week has plenty of economic and earnings releases, including the Fed’s key inflation data.

The earnings are interesting to me, the fudged and confusing economic data not so much.

Selected current ideas: (It is OK to be holding some cash here, we are.)

Magnet® : 

Byrna Tech                     BYRN 

Hims & Hers Health        HIMS                           

GeneDX Holdings           WGS

FACTS:

Technip FTI                      FTI

Generac                          GNRC

Deckers                           DECK

For more information, contact us.

More By This Author:

The Stock Market Looks Temporarily Exhausted
Don’t Confuse Brains With A Bull Market, Or Price With Value
Buckle Up And Use Volatility To Your Advantage