I always like to keep an open mind when analyzing the markets. I do my best to look at the positives and negatives and then adjust my investment levels accordingly. Right now, there is a mixed picture as some of the positive signs I’ve mentioned recently are seeing a little weakness. For example, the fact there was little distribution was a positive sign but it is slowly picking up on the Nasdaq Composite and really picking up on the S&P 500. All the major averages are still above their 10-weeks but I would like to make sure the S&P 500 holds that level over the near-term. The leaders are acting well but many are extended from proper buy points. The Fed is still on our side but the increase in coronavirus cases could potentially weigh on the markets. Sentiment is still persistently bearish. That is why I’ve been saying there is nothing wrong with being cautious at times, but don’t get too bearish, especially when the majority are fearful.

Regarding my email on Thursday night, I increased my investment levels during the week last week because many of my stocks were holding up very well. Unfortunately, Friday’s selloff forced me to reduce my exposure from 90% down to approximately 40%. I did this by selling the stocks that closed below their 10-weeks and reducing the size of many of my positions. The best way to summarize my current view of the market is to be patient until we get a clearer picture. As I point out in this video, there are definitely sectors of the market that are acting very weak (such as financials, energy, transports, and utilities), but many growth leaders are still strong overall. Either this weakness will bring the rest of the market down, or the weakness will stabilize and the market will resume its uptrend. I prefer to wait for a clearer picture than guess which one will happen next. See you on Monday night for the next Stock Screening Webinar!

Russell Re-balancing link: https://www.investopedia.com/articles/stock-analysis/062516/russell-rebalance-study-what-you-need-know.asp

Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review
3) 11:40 Comments on Thursday Night’s email
4) 15:10 Stock Review – Mega Cap Focus List: AMZN, MSFT, NFLX, ADBE, FB, GOOGL
5) 18:00 Stock Review – Software Focus List: COUP, AYX, VEEV, OKTA, DDOG, CRWD, FSLY, TWLO, NOW, ZS, ZM
6) 22:45 Stock Review – Artificial Intelligence Focus List: SDGR, BTAI, ICAD, DT
7) 24:40 Stock Review – Biotech/Medical Products: SGEN, VRTX, DXCM, STAA, ADVM
8) 26:50 Stock Review – Others: NVDA, Z, CHGG, TSLA, SHOP, BYND
9) 29:15 Stock Review – Comments on recently mentioned stocks: LVGO, MTCH, PTON, NBIX, TW, KALA
10) 32:30 Current Setups – LLY, AKAM
11) 33:40 Conclusion/Summary