Top 10 Report – November 6, 2019

Market Insight

The NASDAQS&P 500 and DOW are now all trading at new all-time highs, although they are currently extended above their 10-DMA’s and could use a rest before continuing higher. The distribution count has tapered off to 3 days on both the NASDAQ and S&P 500, which is hardly a concern with 3 ouf of the major indexes making new all-time highs.

Also, earnings season has maintained a positive tone, and a broad base of leading growth stocks continues to lead the market higher.

I would expect headline and tweet induced volatility to continue in the manner it has, which makes things tricky. However, it’s fine to buy stocks as long as you have proper edge and obey your sell stops. Make sure to exercise discipline and wait until you see “your setup,” so you have the conviction to stick to your guns when things get volatile and emotions are running high.

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

NOTE: We are currently in the thick of earnings season, so be sure to check and double check when a stock is due to report EPS before initiating a position. These dates change, and often at the last minute.

The Indicies

The NASDAQ has made new all-time highs for the last three days and is now extended above its 10-DMA, so a little rest here would be considered healthy and constructive.

The small-cap Russell 2000 has continued to push through significant overhead resistance over the last several weeks, although it is still lagging the other three major indexes.

The S&P 500 broke out to new all-time high about a week and a half ago and has continued to make constructive progress higher since.

The DOW broke out to new all-time highs on Monday and then followed through to another all-time high yesterday as volume expanded, which is a sign of strength.

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November 5, 2019

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