I am bullish into year-end for the following reasons: There’s very little distribution, the major indexes continue to hold their 10-week moving averages, the leaders are acting very well, the Fed is on our side, and sentiment is very muted with the market near new highs. Of course, we will see shakeouts, pullbacks, and corrections along the way, but I don’t foresee any sustained corrections with so many people under-invested and rushing for the exits on any pullback. It’s possible we will continue to see these 1-3 day, 6-10% corrections to keep the bulls in check. We could also see this continuous sector rotation, which keeps the major averages propped up and is very healthy in bull markets. If any of the reasons why I am bullish change, I will do my best to update you in my twice a week videos, or I will send an email if anything major happens. Otherwise, I’m going to stick with this trend, do my best to take profits into strength, and have some cash for the inevitable pullbacks.
As long as the trend continues, I suggest focusing on the leaders that I discussed in the 5/4 and 6/17 videos. 5 stocks that are buyable now include SGEN, CHGG, IDYA, CRWD, CRNC. As always, if any of these stocks (or any of the other leaders I’ve discussed) close below their 10-week moving averages, I will be stopping myself out. I would also pay attention to their 21-day EMAs as an area of support or for potential pullback buys. Good luck and cheers to hopefully a strong second half!