“No army can withstand the strength of an idea whose time has come.”   - Victor Hugo

Market Commentary

The music has become louder and faster. Not the time to chase.

• The biggest indexes are now overbought again but we are still seeing excellent set-ups in top-ranks Magnet stocks.
• Underneath the major indexes, several low volume pullbacks are showing us good entry points.
• The market has a way of pulling emotional “investors” into extended runs and panicking others in quick selloffs. It is better to know what and why you own companies rather than trade on moving averages.
• The Advance/decline line on the NYSE looks fine, but despite the “everything rally” the Nasdaq A/D has still not broken the downtrend that began in February. Serious warning.  
• This week’s 52-week new-high/new-low numbers showed the number of new lows increase slightly, but not sending off any warning signals.
• I am seeing potential “blowoffs” taking place that will not be recognized until the tide goes out. As the calendar turns, look for selling those names.

Economic data and market clues

There are several economic data releases this week. None of them should suggest the Fed will alter their path of cutting ¼ point and then pausing. If you are still focusing on the Fed, you might find better things to do.

This week has high-profile earnings releases in companies in which we are interested. As always, my focus is in the forward narrative, not the numbers which can be and often are easily manipulated. It is important to read the full earnings statements.

If you have been under-invested all year, it is not the best time to play catch up

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

Vistra                                VST

More By This Author:

Stop Trying To Call The Top
The Stock Market Looks Temporarily Exhausted
Don’t Confuse Brains With A Bull Market, Or Price With Value