Top 10 Report – November 27, 2019

Market Insight

The major indexes are in melt-up mode. Once again, the NASDAQ, S&P 500 and DOW all finished yesterday’s session at new all-time highs, while the Russell 2000 has continued to power through significant overhead resistance as it tries to catch up to the other major indexes. The distribution count remains at manageable levels.

As far as market sentiment is concerned, only the VIX is currently at levels that are considered extreme, or where corrections tend to occur. However, in and of itself the VIX isn’t a very reliable indicator. What I have found is that when the VIX, Put/Call Ratio and McClellan Oscillator are all at extremes in tandem, it’s typically a good time to start taking profits, selling losers and reducing overall exposure in general, especially if you run highly concentrated positions.

Market leadership remains healthy and broad. Leading growth stocks with excellent fundamentals continue to breakout of sound bases on heavy volume and make worthwhile progress to the upside. The same sectors that we discussed in the last report remain in play. They were the technology, medical/biotech, retail, building, financial and transportation sectors.

So, continue to keep track of the strongest stocks in the strongest groups, with the best fundamentals. Set your alerts and be ready to buy these stocks as entry areas present themselves.

The Indicies

The NASDAQ closed at new all-time highs over the last couple sessions and is now extended above its very short-term 4-EMA, where a pause of some sort is highly likely.

The Russell 2000 finally broke out of its 3-weeks tight pattern on heavy volume and cleared its next level of significant overhead resistance, which is a sign of strength.

The S&P 500 closed at new all-time highs over the last couple sessions and is now extended above its very short-term 4-EMA, where a pause of some sort is highly likely.

The DOW made new all-time highs over the last couple sessions and is now extended above its very short-term 4-EMA, where a pause of some sort is highly likely.



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November 27, 2019

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