Weekend Update And Top Current Holdings

Stocks closed out a very bullish week with semi-moderate losses on Friday. The DJIA and RUT led the way to the downside but volume was lower across the board which means that institutional investors were not dumping stocks following the move into new high ground on the Russell 2000 and the Nasdaq. Internally, the action wasn’t that great but my personal holdings did very well and intraday only one stock hit a partial sell stop and by the EOD that stock was higher.

As I stated Thursday evening, everything is working beautifully. All of my long positions that are currently in my portfolios are higher or have extremely tiny losses right now and those with tiny losses are still above final cut loss levels. On top of that, there is not one single holding that looks to be in any short-term danger of rolling over. While it definitely could happen there are zero setups that indicate this is on the horizon.

Instead I continue to see stocks consolidate in rounding or flat trading fashion and/or continue to see stocks breaking out to new highs. A lot of stocks that I have even flagged as potential shorts like REN and CRBP are having a tough time selling off from their recent highs. Scan after scan that I go through continues to confirm the strength in the overall market. This can be easily seen in the NYSE ADV/DEC line. The NYSE ADV/DEC line hit a new 52-week high (using IBD’s data) this week while the NYSE and SPX still have not. That is called positive divergence.

Another interesting situation that developed this week was on the sentiment side. The AAII survey came out with bulls falling to 25% while bears rose to 38% and the Investors Intelligence survey came out with bulls falling to 45% while bears rose to 24%. All the while the Nasdaq, Nasdaq 100, and Russell 2000 hit new highs this week. If this is not one of the most unloved new highs in the stock market, it is at least one of the most unloved new highs I have been a part of since I started my journey in 1996.

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Disclosure: None.

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