Market Summary: The major averages were down this week but the leaders acted very well. Last Monday night (5/11/20), I sent an email that we could see some profit taking and we ended up seeing some distribution on Tuesday (on the Nasdaq Composite) and Wednesday (on the S&P 500). During uptrends, it is normal to see occasional selling and pullbacks to the 20-day moving average (on both the leaders and the indexes). Since my MidWeek Video on Wednesday, I mentioned that I would be on the lookout for more possible distribution. I was planning on reducing exposure further if this occurred and I could always increase exposure if the market stabilized.

What impressed me the most on Thursday (early in the session) was how the averages were down but the majority of stocks on my screen were green. Also, sentiment was getting bearish again so I decided to increase my exposure from 50% back up to 80%. As I mention in the video, this type of active management is not for everyone because it involves watching the market, being nimble, and making decisions. If you don’t have the time to watch the market closely, then I recommend keeping smaller positions and sticking with the trend. For people with shorter-term timeframes, strong stocks should hold their 20-days in uptrends. For the longer-term holders, use the 10-week moving average as your guide.

Overall, I remain bullish on this market because the leaders are acting well, the Fed is on our side, and sentiment is muted as many people are still scared, bearish, and under-invested. Of course, I will be on the lookout for more distribution this week and I will be watching the leaders. If I see any warning signs, I will reduce exposure if needed. Good luck this week, remember to stay focused on the leaders, and always protect your confidence.

Topics covered:
1) 0:00 Announcements/Structure of the Videos
2) 1:30 Market Commentary/Index Review: Nasdaq Composite, S&P 500, Russell 2000 and a CBOE statistic.
3) 23:20 Stock Review – Leaders: MSFT, AAPL, NFLX, AMZN, NVDA, SGEN, VRTX, DXCM, SHOP, TSLA, NOW, OKTA, VEEV, TEAM, COUP, SDGR, BTAI
4) 37:00 Stock Review – General Ideas: DOCU, FIVN, ADBE, NET, GDDY, GLD, FSLY, GH, AMD, FB, ZM, IBB, XBI, NBIX, AMGN, REGN, NLTX, SNDX, TBIO, QDEL, KALA, CGEN, SMAR, ICAD, AXNX
5) 46:50 Stock Review – Top 5 Buyable Entries: EVER, DT, TSLA, PRVB, AMZN
6) 48:20 Conclusion/Summary