The NASDAQ and S&P 500 finished last Friday’s session at new all-time highs. The DOW ended only slightly below and the Russell 2000 continued to make constructive progress higher, although it remains the laggard of the bunch.
The distribution count now stands at 4 days on both the NASDAQ and S&P 500. Fortunately, distribution days have been relatively mild and spread out, which is ideal.
More importantly, the uptrend in the general market continues to be supported by a broad base of healthy leadership. So, continue to keep track of the strongest stocks in the strongest groups, with the best fundamentals. Set your alerts and be prepared to buy these stocks as they emerge from constructive bases on heavy volume.
IMPORTANT: Earnings season is in full swing, so it is critical to check and recheck when a company is due to report earnings before initiating a position in their stock. These dates can change and often at the last minute, so be careful.
PLEASE NOTE: All sell stops are meant to be used on a closing basis.
The NASDAQ rose 1.11% and closed at a new all-time high, although volume declined, which isn’t all that surprising for a Friday in the middle of summer.
The Russell 2000 has been consolidating constructively over the last few weeks and looks ready to begin heading higher from here.
The S&P 500 rose 0.74% and closed at a new all-time high, although volume on the NYSE declined, which isn’t all that surprising for a Friday in the middle of summer.
The DOW has been moving sideways in a tight range over the last couple weeks and is currently trading just slightly above the confluence of its prior high and its 21-DMA, which is constructive.
Buy CIEN on a big volume move through $46.23, with a sell stop at its 23-EMA &/or on a constructive pullback to $44.83, with a sell stop at its 23-EMA. (Price Alert: $46.23)