Top 10 Report – February 10, 2020

Market Insight

The NASDAQ, S&P 500 and DOW finished last week just slightly below all-time highs, while the Russell 2000 continued to lag, closing out the week just a hair above its key 50-DMA. The distribution count declined to 4 days on both NASDAQ and S&P 500, which isn’t all that high, not to mention, the major indexes are in good shape overall.

Leading stocks also shaped up last week and led the general market to new all-time highs. Fortunately, the market’s leadership remains healthy and broad, which is the single most important factor regarding the sustainability of the uptrend in the general market.

So, continue to pay close attention to how rotation takes shape and focus on the strongest names in the strongest groups, with the best fundamentals. These are the stocks you ultimately want to be concentrated in.

Keep your emotions in check, stick to your rules and your plan and wait for the perfect setup and entry to develop, or do not trade. Remember, “buying right” is your best defense.

The Indicies

The NASDAQ made new all-time highs last Tuesday, Wednesday and Thursday and then pulled back slightly on declining volume last Friday, which is considered healthy and constructive action.

The small-cap Russell 2000 continued to lag the other major indexes. It fell last Thursday and Friday, found support a hair above its key 50-DMA and closed 3.40% below its prior all-time highs as volume declined.

The S&P 500 made a new all-time high last Thursday and then pulled back slightly on declining volume last Friday, which is considered healthy and constructive action.

The DOW made a new all-time high last Thursday and then pulled back slightly on declining volume last Friday, which is considered healthy and constructive action.



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February 10, 2020

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