Top 10 Report – September 11, 2019

Market Insight

Good Morning,

Since the NASDAQ and S&P 500 broke back above their 50-DMA’s last Thursday, they have continued to make constructive progress above this key moving average, keeping the current rally alive and well.

Meanwhile, the market’s leadership appears to be undergoing an extremely volatile rotational cycle. Cloud related software names as well as many medical/biotech shares have been under heavy assault over the last couple days. On the other hand, money seems to be finding its way into leading stocks in the financial, semiconductor equipment and retail areas of the market, that are forming constructive bases.

However, extreme volatility like we are currently seeing makes progress difficult. So, be very selective, start small and scale in, but only if progress is being made.

Always remember, “buying right” is our first line of defense and a major component of sound risk management, so remain disciplined and wait for perfect setups to emerge. Never chase!


The Indicies

The NASDAQ shook out into last Thursday’s gap and below its 50-DMA yesterday, but bounced at logical support, closed back above its 50-DMA and just a hair below its high for the day as volume expanded, which is constructive.

The small-cap Russell 2000 finally reclaimed its 50 and 200-DMA’s over the last two days on consecutively heavier volume, finished the session 1.23% higher and closed just a hair below its high for the day, which is very constructive.

The S&P 500 shook out into last Thursday’s gap, but held up well above its 50-DMA and closed near session highs as volume on the NYSE expanded, which is constructive.

The DOW has crept ever so slightly higher since it reclaimed its 50-DMA last Thursday and finished yesterday’s session with an outside day up on heavier volume, which is constructive.

Top 10 Stocks

Buy CRUS on a big volume move through $55.77, with a sell stop at its 23-EMA. (Price Alert: $55.77)

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Stocks on Deck

September 10, 2019