Market Summary: The market pulled back last week on light volume. As I mentioned a few times, when we are in an uptrend, the week after regular options expiration tends to see some profit taking and pullbacks. What I do like was that the selling was on light volume and many stocks performed well. When comparing the 4 major indexes, the Dow Jones was down the most (-1.93%), the S&P 500 second most (-1.32%), the Nasdaq Composite held in very well (only down -0.18%), and the Russell 2000 was up (+0.32%). This last part is very important because the Russell shows us risk appetite from the large institutions. More importantly, many of the stocks discussed in these videos and in the screening webinars held up very well and some saw strong gains this week, a sign of overall health.
Going forward, I still expect more consolidation. Please keep in mind that the averages have seen strong gains off the March lows and some pullbacks and shakeouts are to be expected. Overall, what is keeping me constructive on the market is the price action of leading stocks. So many growth stocks are breaking out and holding their breakouts. If you missed some, don’t worry because there are more setting up behind them. Also, you can look for pullback buys (when some of the breakouts pullback to their 20-day moving averages) as a place to possibly start positions.
Topics covered:
1) 0:00 Announcements/Outline of the Videos/Discussion on making decisions
2) 5:00 Market Commentary/Index Review: Nasdaq Composite, S&P 500, Russell 2000 and Dow Jones.
3) 10:50 Stock Review: AMZN, NFLX, AAPL, GOOGL, FB, NVDA, AMD, ACAD, ARVN, CCXI, CNST, CHWY, DOCU, FIVN, IPHI, SGEN, PETS, ICAD, VAPO, KALA, BTAI, SDGR, ZNTL, KROS, RNG, SHOP, SNDX, TSLA, NLOK, MNTA, KRTX, KOD, NLTX, ZYXI, AKAM, EVER, SLP
4) 38:10 Conclusion/Summary