It’s Getting Interesting
Things are definitely getting more interesting at
this point. The market is worth watching, as well as looking around
for individual stocks. The major indices made nice “shakeout moves”
last Friday by undercutting the low set on 6/12. Volume came in heavy, the
Put/Call ratio moved above 1.0, advisor sentiment has shifted to a much more
neutral stance, and the VIX popped up into the mid-thirties. We may very well
see a confirmation on the rally that began on Friday.
The rally would be killed if the market were to undercut the lows set on
6/14. So at this point, we are looking for the market to do one of the two
above-mentioned things.
The ultimate indicator of the market’s strength is, of course, the success
of individual stocks. If the market does follow through on the newest rally, it
will be important to track leading issues. At the present time, there are very
few.
Retail/wholesale auto parts stores have been evident lately. Autozone
(
AZO |
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Auto Parts
(
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top of its previous base. One thing worth noting on AAP is that it went public
back in November. I am always attracted to companies that are newer to public
trading.
Corinthian Colleges
(
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working on a flat base after wedging higher since last summer. The only thing I
would mention comes in regard to the Commercial Services group because its
Relative Strength and some of the other stocks in the group have been falling,
or running into some selling pressure.
After a previous breakout attempt failed, Fidelity
National Financial
(
FNF |
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pivot point of 31.26. If this stock tries to move harder, maybe its second try
will produce enough volume to be successful.
The ever-so-popular homebuilding group is working through a correction and
possibly forming new bases. The previous rally in this group was phenomenal and
provides us with motivation to keep a close eye on them. From the last rally,
I’d probably lean towards Ryland
(
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and NVR
(
NVR |
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sector.
Something may very well happen over the next few days, so I may be back on
Thursday with an exciting perspective and a few more names to watch.
Good trading over the next few days,